Private Health Insurance in OECD Countries and Selection in Private Health Insurance Markets

Abstract

In this paper, we present an overview of the private health insurance market and regulations on private health insurance in OECD countries along with a graphical framework to address selection in this market. We find that private health insurance plays an important role in the health care system of OECD countries. It is highly promoted in countries like Chile, the United States, Israel, Ireland, Canada, Slovenia, Germany and France due to the fact that it has the potential to provide better health care services to individuals along with shifting cost pressures from public health systems to the private sector. However, the existence of selection in this market can cause the positive impacts to disappear.