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on Insurance Economics |
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Issue of 2015‒11‒15
thirteen papers chosen by Soumitra K. Mallick Indian Institute of Social Welfare and Business Management |
| By: | Congressional Budget Office |
| Abstract: | CBO and the staff of the Joint Committee on Taxation have lowered their estimates of the net federal cost of the ACA’s insurance coverage provisions. As reflected in CBO’s April 2014 baseline, the agencies now project a cost of $36 billion for 2014, $5 billion less than the projection made in February; and close to $1.4 trillion for the 2015–2024 period, about $100 billion less than the February projection. |
| JEL: | I10 I11 I13 I18 I38 |
| Date: | 2014–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:report:452310&r=ias |
| By: | Perry Beider; David Torregrosa; Susan Willie |
| Abstract: | CBO analyzed a variety of options for federal insurance against the risk of terrorism before the program was reauthorized in January 2015. This paper examines in more detail some options that might be considered in the future. |
| JEL: | G22 G28 H12 H25 H42 H84 |
| Date: | 2015–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:wpaper:50171&r=ias |
| By: | Congressional Budget Office |
| Abstract: | The health care benefits provided to military service members, retirees, and their families are more generous than those generally provided through private or employment-based health insurance. Between 2000 and 2012, the cost of providing military health care increased by 130 percent (after adjusting for inflation). This report examines some options for constraining those costs. The largest savings would come from increasing cost sharing for military retirees. |
| Date: | 2014–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:report:449930&r=ias |
| By: | Congressional Budget Office |
| Abstract: | The federal program that provides insurance against the risk of terrorism expired at the end of 2014. Without such a program, taxpayers will face less financial risk, but some businesses will lose or drop their terrorism coverage. Last year the Congress considered legislation to reauthorize the program but shift more risk to the private sector. Other options include limiting federal coverage to attacks using nonconventional weapons, and charging risk-based prices for federal coverage. |
| JEL: | G22 G28 H25 H42 |
| Date: | 2015–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:report:498660&r=ias |
| By: | AMARANTE, Massimiliano; GHOSSOUB, Mario; PHELPS, Edmund |
| Abstract: | Empirical evidence suggests that ambiguity is prevalent in insurance pricing and underwriting, and that often insurers tend to exhibit more ambiguity than the insured individuals (e.g., [23]). Motivated by these findings, we consider a problem of demand for insurance indemnity schedules, where the insurer has ambiguous beliefs about the realizations of the insurable loss, whereas the insured is an expected-utility maximizer. We show that if the ambiguous beliefs of the insurer satisfy a property of compatibility with the non-ambiguous beliefs of the insured, then there exist optimal monotonic indemnity schedules. By virtue of monotonicity, no ex-post moral hazard issues arise at our solutions (e.g., [25]). In addition, in the case where the insurer is either ambiguity-seeking or ambiguity-averse, we show that the problem of determining the optimal indemnity schedule reduces to that of solving an auxiliary problem that is simpler than the original one in that it does not involve ambiguity. Finally, under additional assumptions, we give an explicit characterization of the optimal indemnity schedule for the insured, and we show how our results naturally extend the classical result of Arrow [5] on the optimality of the deductible indemnity schedule. |
| Keywords: | Optimal insurance; Deductible; Ambiguity; Choquet integral; Distorted probabilities |
| JEL: | G22 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:mtl:montde:2015-03&r=ias |
| By: | Congressional Budget Office |
| Abstract: | Spending for Medicare's prescription drug program (Part D) was $50 billion in 2013—about 50 percent less than CBO projected when the program was created. Lower growth rates in national drug spending and lower-than-expected enrollment primarily account for the difference. The competitive design of Part D has also constrained spending. CBO found that spending was lower in years when, and in areas of the country where, more plan sponsors competed for beneficiaries. |
| JEL: | I10 I11 I13 I18 I38 |
| Date: | 2014–07–30 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:report:455520&r=ias |
| By: | Congressional Budget Office |
| Abstract: | CBO and the staff of the Joint Committee on Taxation have analyzed the main budgetary and economic effects of repealing the Affordable Care Act and concluded that doing so would probably increase federal deficits over the next decade, whether or not macroeconomic feedback to the budget is included. Such feedback would reduce deficits, but would not offset the increases in deficits stemming from the other effects of repealing the ACA. |
| JEL: | H20 H40 I11 I13 I18 |
| Date: | 2015–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:report:502521&r=ias |
| By: | Congressional Budget Office |
| Abstract: | CBO and the staff of the Joint Committee on Taxation have analyzed the main budgetary and economic effects of repealing the Affordable Care Act and concluded that doing so would probably increase federal deficits over the next decade, whether or not macroeconomic feedback to the budget is included. Such feedback would reduce deficits, but would not offset the increases in deficits stemming from the other effects of repealing the ACA. |
| JEL: | H20 H40 I11 I13 I18 |
| Date: | 2015–06–19 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:report:502520&r=ias |
| By: | Jody Schimmel Hyde; David C. Stapleton |
| Abstract: | The Social Security Disability Insurance (DI) and Supplemental Security Income (SSI) programs, administered by the Social Security Administration (SSA), provide income support to individuals who have long-lasting medical impairments and are unable to work at a substantial level. |
| Keywords: | SSDI, SSI, SSA, Ticket to work |
| JEL: | I J |
| Date: | 2015–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:31ed0cd196e5406b972ffa8ecb5b7fc5&r=ias |
| By: | Carol V. Irvin; JudyAnn Bigby; Vivian Byrd; Michael Barna; Suzie Witmer; Maureen Higgins |
| Abstract: | Oregon is using a Medicaid Section 1115 demonstration waiver to redesign the structure of its Medicaid delivery and payment systems and to drive transformation of the state’s health care system. This report summarizes the results of a midpoint evaluation of Oregon’s demonstration and the introduction of Coordinated Care Organizations (CCOs) which are the single point of accountability for health care access, quality, and outcomes of Medicaid beneficiaries. |
| Keywords: | Medicaid, section 1115 demonstration, system transformation, payment reform, accountable care organization |
| JEL: | I |
| Date: | 2015–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:afe1dc5e3e824b30ba7170f4b8a87594&r=ias |
| By: | Huang, Wei (Harvard University); Luo, Mi (New York University) |
| Abstract: | People may have imperfect information about their health status and thus make suboptimal decisions in insurance participation. Using national representative samples of the elderly in US and China, we find that people with lower socio-economic status and poorer health are relatively less likely to realize how unhealthy they are and this overconfidence is associated with no insurance participation. Accurate health information provided through physical examinations induces relatively higher participation among the overconfident people afterwards. These findings contribute a new explanation for the insufficient participation and advantageous selection in health insurance, and provide new insights on the insurance market and policy suggestions. |
| Keywords: | overconfidence, health, health insurance participation |
| JEL: | I12 I13 J14 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9481&r=ias |
| By: | Laps, Jochen |
| Abstract: | The paper analyzes the welfare consequences of insuring mortality risk by means of standard, fully funded Social Security pensions when individuals wish to make transfers to their heirs. In the presence of uninsured mortality risk, within-family transfers depend on realized lifespan. While crowding out private transfers, Social Security provides transfer insurance and insurance of the ex ante risk of future generations inheriting a particular amount of transfer wealth. We find that, once ex ante insurance is taken into account, Social Security is welfare improving over the long-run as long as capital is not too productive and the transfer motive is not too strong. Altruists gain far less from Social Security than egoists. |
| Keywords: | Uninsured mortality risk; social security pensions; bequest motive; bequest insurance |
| Date: | 2015–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:awi:wpaper:0603&r=ias |
| By: | Molina Millán, Teresa (Universidade Nova de Lisboa) |
| Abstract: | To test whether transfers sent and received by regional migrants serve an insurance role, this paper estimates the causal impact of income shocks at a migrant's origin and destination location on the bilateral transfer of funds. Using rainfall shocks in rural Nicaragua, I find that migrants aged 15-21 years provide unilateral insurance to their origin household. Distinguishing by destination and economic activity I show that the level of insurance increases when migrants and households are exposed to less correlated shocks. In addition, I find evidence of bilateral insurance among rural migrants exposed to rainfall shocks with low levels of correlation with respect to shocks occurring at origin. |
| Keywords: | internal migration, remittances, risk, insurance, inter-households transfers, weather shocks |
| JEL: | O12 O15 F24 R23 |
| Date: | 2015–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp9494&r=ias |