Public health insurance in Germany adversely selected based on self-assessed health.
The article looks at how people choose between public and private health insurance when they have the option to switch. It shows that public insurance tends to attract people with higher health risks. In Germany, where this study was done, people who think they are less healthy tend to stick with public insurance, while those who are more risk-averse choose public insurance. This suggests that there may be differences in information between private insurers and their customers.