Adverse selection and categorical discrimination in the health insurance markets: The effects of genetic tests

Journal of Health Economics

Volumn 19, Issue 2, 2000, Pages 197-218

  Strohmenger, R ^a   Wambach, A ^a  

^a UNIVERSITY OF MUNICH   (Germany)

Author keywords

Asymmetric information; Genetic testing; Health insurance markets

Indexed keywords

CONTRACT; COST UTILITY ANALYSIS; FINANCIAL MANAGEMENT; GENETIC PREDISPOSITION; GENETIC PROCEDURES; HEALTH CARE COST; HEALTH INSURANCE; MODEL; PROBABILITY; QUALITY OF LIFE; REVIEW; RISK ASSESSMENT;

EID: 0034026432     PISSN: 01676296     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0167-6296(99)00021-1     Document Type: Article

References (56)

1. Ad Hoc Committe on Genetic Testing/The Insurance Issues, 1995. Background statement: genetic testing and insurance. Am. J. Hum. Genet. 56, 327-331.
2. American College of Medical Genetics/American Society of Human Genetics Working on Apoe and Alzheimer Disease, 1995. Statement on use of apolipoprotein E testing for Alzheimer disease. JAMA 274 (20), 1627-1629.
3. Anderson, R.M. (Ed.), 1997. Human genetics - uncertainties and the financial implications ahead, Philos. Trans. R. Soc. London B, 1067-1076.
4. Billings, P.R., Kohn, M.A., De Cuevas, M., Beckwith, J., Alper, J.S., Natowicz, M.R., 1992. Discrimination as a consequence of genetic testing. Am. J. Hum. Genet. 50, 476-482.
5. Borenstein, S., 1989. The economics of costly risk sorting in competitive insurance markets. Int. Rev. Law and Economics 9, 25-39.
6. Buhler, J., Owerbach, D., Schaffer, A.A., Kimmel, M., Gabbay, K.H., 1997. Linkage analysis in type I diabetes mellitus using CASPAR, a software and statistical program for conditional analysis of polygenic diseases. Hum. Hered. 47 (4), 211-222.
7. Chuffart, A., 1996. Genetic testing in Europe. J. Insur. Med. 28, 125-135.
8. Cook, P.J., Graham, D.A., 1977. The demand for insurance and protection: the case of irreplaceable commodities. Q. J. Economics 91, 143-156.
9. Crocker, K.J., Snow, A., 1986. The efficiency effects of categorical discrimination in the insurance industry. J. Political Economy, 321-344.
10. De la Chapelle, A., Peltomäki, P., 1995. Genetics of hereditary colon cancer. Annu. Rev. Genet. 29, 329-348.
11. De Meza, D., 1983. Health insurance and the demand for medical care. J. Health Economics 2, 47-54.
12. Dionne, G., 1983. Adverse selection and repeated insurance contracts. Geneva Papers on Risk and Insurance 8, 316-332.
13. Dionne, G., Doherty, N., 1992. Adverse selection in insurance markets: a selective survey. In: Dionne, G. (Ed.), Contributions to Insurance Economics. Kluwer Academic Publishers, 97-140.
14. Doherty, N.A., Thistle, P.D., 1996. Adverse selection with endogenous information in insurance markets. J. Public Economics 63, 83-102.
15. Edenberg, H.J., Foroud, T., Conneally, P.M., Sorbel, J.J., Carr, K., Crose, C., Willig, C., Zhao, J., Miller, M., Bowman, E., Mayeda, A., Rau, N.L., Smiley, C., Rice, J.P., Goate, A., Reich, T., Stine, O.C., McMahon, F., DePaulo, J.R., Meyers, D., Detera-Wadleigh, S.D., Goldin, L.R., Gershon, E.S., Blehar, M.C., Nurnberger, J.I., 1997. Initial genomic scan of the NIMH genetics initiative bipolar pedigrees: chromosomes 3, 5, 15, 16, 17, and 22. Am. J. Med. Genet. 74 (3), 238-246.
16. Evans, I., 1994. The challenge of breast cancer. Lancet 343, 1085-1086.
17. Giardiello, F.M., Brensinger, J.D., Petersen, G.M., Luce, M.C., Hylind, L.M., Bacon, J.A., Booker, S.V., Parker, R.D., Hamilton, S.R., 1997. The use and interpretation of commercial APC testing for familial adenomatous polyposis. New Engl. J. Med. 336 (12), 823-827.
18. Goellner, G.M., Tester, D., Thibodeau, S., Almqvist, E., Goldberg, Y.P., Hayden, M.R., McMurray, C.T., 1997. Different mechanisms underlie DNA instability in Huntington disease and colorectal cancer. Am. J. Hum. Genet. 60 (4), 879-890.
19. Hall, J., 1996. Consumer utility, social welfare, and genetic testing. A response to 'Genetic testing: an economic and contractarian analysis'. J. Health Economics 15 (3), 377-380.
20. Hoy, M., 1982. Categorizing risks in the insurance industry. Q. J. Economics 97, 321-336.
21. Hoy, M., 1984. The impact of imperfectly categorizing risks on income inequality and social welfare. Can. J. Economics 17, 557-568.
22. Hoy, M., 1989. The value of screening mechanisms under alternative insurance possibilities. J. Public Economics 39, 177-206.
23. Jacoby, R.F., Schlack, S., Cole, C.E., Skarbek, M., Harris, C., Meisner, L.F., 1997. A juvenile polyposis tumor suppressor locus at 10q22 is deleted from nonepithelial cells in the lamina propria. Gastroenterology 112 (4), 1398-1403.
24. Ji, L., Malecki, M., Warram, J.H., Yang, Y., Rich, S.S., Krolewski, A.S., 1997. New susceptibility locus for NIDDM is localized to human chromosome 20q. Diabetes 46 (5), 876-881.
25. Jouanolle, A.M., David, V., Le Gall, J.Y., 1997. Genetic hemochromatosis. Ann. Biol. Clin. 55 (3), 189-193.
26. Kato, S., Bowman, E.D., Harrington, A.M., Blomeke, B., Shields, P.G., 1995. Human lung carcinogenDNA adduct levels mediated by genetic polymorphisms in vivo. J. Natl. Cancer Inst. 87 (12), 902-907.
27. Keen, R.W., Hart, D.J., Lanchbury, J.S., Spector, T.D., 1997. Association of early osteoarthritis of the knee with Taq I polymorphism of the vitamin D receptor gene. Arthritis Rheum. 40 (8), 1444-1449.
28. Maziade, M., Bissonnette, L., Rouillard, E., Martinez, M., Turgeon, M., Charron, L., Pouliot, V., Boutin, P., Cliche, D., Dion, C., Fournier, J.P., Garneau, Y., Lavallee, J.C., Montgrain, N., Nicole, L., Pires, A., Ponton, A.M., Potvin, A., Wallot, H., Roy, M.A., Merette, C., 1997. 6p24-22 region and major psychoses in the Eastern Quebec population. Le Groupe IREP. Am. J. Med. Genet. 74 (3), 311-318.
29. Meissen, G.J., Myers, R.H., Mastromauro, C.A., 1988. Predictive testing for Huntington's disease with use of a linked DNA marker. New Engl. J. Med. 318, 535-542.
30. Merriman, T., Twells, R., Merriman, M., Eaves, I., Cox, R., Cucca, R., McKinney, P., Shield, J., Baum, D., Bosi, E., Pozzilli, P., Nistico, L., Buzzetti, R., Joner, G., Ronningen, K., Thorsby, E., Undlien, D., Pociot, F., Nerup, J., Bain, S., Barnett, A., Todd, J., 1997. Evidence by allelic association-dependent methods for a type 1 diabetes polygene (IDDM6) on chromosome 18q21. Hum. Mol. Genet. 6 (7), 1003-1010.
31. Miyazaki, H., 1977. The rat race and internal labour markets. Bell J. Economics VIII, 394-418.
32. Morelli, A., Falchetti, A., Castello, R., Furlani, L., Tomassetti, P., Tonelli, F., Frilling, A., Serio, M., Brandi, M.L., 1995. Genetic screening to identify the gene carrier in Italian and German kindreds affected by multiple endocrine neoplasia type 1 (MEN 1) syndrome. J. Endocrinol. Invest. 18 (5), 329-335.
33. Moseley, R.E., Crandall, L.A., Dewar, M.A., Nye, D., Ostrer, H., 1991. Ethical implications of a complete human gene map for insurance. Business Prof. Ethics J. 10, 69-82.
34. Motulsky, A.G., 1994. Predictive genetic diagnosis. Am. J. Hum. Genet. 55, 603-605.
35. Neudeck, W., Podczeck, K., 1996. Adverse selection and regulation in health insurance markets. J. Health Economics 15, 387-408.
36. Noorani, H.Z., Khan, H.N., Gallie, B.L., Detsky, A.S., 1996. Cost comparison of molecular vs. conventional screening of relatives at risk for retinoblastoma. Am. J. Hum. Genet. 59, 301-307.
37. Norman, M.R., Mowat, A.P., Hutchison, D.C., 1997. Molecular basis, clinical consequences and diagnosis of alpha-1 antitrypsin deficiency. Ann. Clin. Biochem. 34, 230-246, Pt 3.
38. Ostrer, H., Allen, W., Crandall, L.A., Moseley, R.E., Dewar, M.A., Nye, D., McCrary, S.V., 1993. Insurance and genetic testing: where are we now? Am. J. Hum. Genet. 52, 565-577.
39. Parsian, A., Chakraverty, S., Fisher, L., Cloninger, C.R., 1997. No association between polymorphisms in the human dopamine D3 and D4 receptors genes and alcoholism. Am. J. Med. Genet. 74 (3), 281-285.
40. Pokorny, R.M., Hofmeister, A., Galandiuk, S., Dietz, A.B., Cohen, N.D., Neibergs, H.L., 1997. Crohn's disease and ulcerative colitis are associated with the DNA repair gene MLH1. Ann. Surg. 225 (6), 718-723.
41. Pokorski, R., 1992. Use of genetic information by private insurers: genetic advances: the perspective of an insurance medical director. J. Insur. Med. 24, 60-68.
42. Rea, J.R., Samuel, A., 1992. Insurance classification and social welfare. In: Dionne, G. (Ed.), Contributions to Insurance Economics. Kluwer Academic Publishers, 377-396.
43. Reed, P., Cucca, F., Jenkins, S., Merriman, M., Wilson, A., McKinney, P., Bosi, E., Joner, G., Ronningen, K., Thorsby, E., Undlien, D., Merriman, T., Barnett, A., Bain, S., Todd, J., 1997. Evidence for a type 1 diabetes susceptibility locus (IDDM10) on human chromosome 10p11-q11. Hum. Mol. Genet. 6 (7), 1011-1016.
44. Roses, A.D., 1996. Apolipoprotein E and Alzheimer's disease. A rapidly expanding field with medical and epidemiological consequences. Ann. NY Acad. Sci. 802, 50-57.
45. Rothschild, M., Stiglitz, J.E., 1976. Equilibrium in competitive insurance markets: an essay on the economics of imperfect information. Q. J. Economics 90, 629-649.
46. Roussomoustakaki, M., Satsangi, J., Welsh, K., Louis, E., Fanning, G., Targan, S., Landers, C., Jewell, D.P., 1997. Genetic markers may predict disease behavior in patients with ulcerative colitis. Gastroenterology 112 (6), 1845-1853.
47. Spence, M., 1978. Product differentiation and performance in insurance markets. J. Public Economics 10, 427-447.
48. Strachan, T., Read, A.P., 1996. Human Molecular Genetics. BIOS Scientific Publishers, Oxford.
49. Tabarrok, A., 1994. Genetic testing: an economic and contractarian analysis. J. Health Economics 13 (1), 75-91.
50. Tabarrok, A., 1996. Genetic testing and human welfare: reply to Hall. J. Health Economics 15 (3), 381-384.
51. Verge, C.F., Gianani, R., Kawasaki, E., Yu, L., Pietropaolo, M., Jackson, R.A., Chase, H.P., Eisenbarth, G.S., 1996. Prediction of type I diabetes in first-degree relatives using a combination of insulin, GAD, and ICA512bdc/IA-2 autoantibodies. Diabetes 45 (7), 926-933.
52. Waterworth, D.M., Bennett, ST., Gharani, N., McCarthy, M.I., Hague, S., Batty, S., Conway, G.S., White, D., Todd, J.A., Franks, S., Williamson, R., 1997. Linkage and association of insulin gene VNTR regulatory polymorphism with polycystic ovary syndrome. Lancet 349 (9057), 986-990.
53. Wilson, C., 1976. A model of insurance markets with asymmetric information. Cowles foundation discussion papers No. 432, June.
54. Wilson, C., 1977. A model of insurance markets with incomplete information. J. Economic Theory 16, 167-207.
55. Wilson, J.D. et al. (Eds.), 1992. Harrison's Principles of Internal Medicine. McGraw-Hill, New York.
56. Zweifel, P., Ferrari, M., 1992. Is there a Sisyphus Syndrome in health care. In: Zweifel, P., French, H.E. (Eds.), Health Economics Worldwide, Developments in Health Economics and Public Policy, Vol. 1, Norwell, Mass, and Dordrecht: Kluwer Academic, 311-220.