(redirected from Cream Skimming)
(1) A popular term for the practice by insurers of selling policies to those who do not need them, then dropping those who are insured when they do need the policies
(2) A highly colloquial term for the acceptance of patients based solely on their ability to pay—i.e., with insurance or cash—while turning away the indigent or poor
Mentioned in ?
References in periodicals archive ?
In economic literature, this is called cream skimming (Van de Ven & Van Vliet 1992).
The main question about health insurance design is how to achieve the benefits of competition while containing the cost of adverse selection and cream skimming (Cutler & Zeckhauser 1999).
MCI can't have it both ways, cream skimming business customers on a system that works, then saying the system doesn't work so they can't serve residential customers.
In a related paper entitled "How Can We Prevent Cream Skimming in a Competitive Health Insurance Market?
As majority of elite institutions are engaged in cream skimming without realising that they are promoting objectionable values and inequality in the society, he said.
This seems to suggest that having the additional diagnosis risk cells enables sickness funds to obtain higher profits from cream skimming relative to profits from persons grouped only by demographic variables.
As the private share of school enrollment increases simple cream skimming becomes less plausible as the explanation for a higher rate of achievement in private schools.
Most generally, cream skimming says that the private school effect is a compositional illusion created by the way children are allocated to schools.
He also accused majority of elite institutions, as being engaged in cream skimming without realizing that they were promoting objectionable values and inequality in the society.
He deprecates claims made by, among others, the Heritage Foundation, the Education Trust, KIPP Academies, Abigail and Stephan Thernstrom, and Jaime Escalante's biographers, insisting that the achievements don't amount to much or couldn't be replicated or that the schools engage in cream skimming.
To address the problems of adverse selection and cream skimming, some payers have been experimenting with various statistical approaches to "risk adjustment," with the goal being to level the proverbial "playing field.