Improvement of Risk Adjustment Model to Strengthen the Competition among Health Insurance Companies in Slovakia
|Autor:||Mgr. Barbora Chochláčová|
|Rok:||2018 - letní|
|Vedoucí:|| MUDr. Ing. Daniel Hodyc Ph.D.
|Typ práce:|| Diplomová
Finance, finanční trhy a bankovnictví
|Abstrakt:||Abstract As it is in many other sectors also in case of health insurance companies it is crucial to ensure sufficient competition what at the same reduces undesired adverse selection of enrollees. Therefore, the key is to have risk adjustment model that accurately captures future health care costs of individuals. PCG model currently used in Slovakia works apart from the simple demographic characteristics of the population as predictors also with chronic conditions. The main aim of the thesis is to compare this model in the form applied today with its modifications classifying more potentially chronic patients into the group, focusing on Hypercholesterolemia. We find a potential for improvement of the model in its adjusted versions bringing better results as from the profit/loss point of view so from R2 increase. While the implementation of the suggested models into the system is not practically limited by the availability of the necessary information nor the time or financial demand.|