By Elias Mossialos and Sarah Thomson
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4 The regulatory framework for VHI in the European Union In recent years the EU regulatory framework for VHI has become an increasingly important aspect of VHI public policy, largely as a result of a series of European Commission directives aimed at creating a single market for life and nonlife insurance in the European Union. This section outlines recent regulatory developments at the EU level. 1 Background Prior to the introduction of these insurance directives, there were two main models for the supervision of insurance operations in the member states: ma8 9 HCPs are very different from traditional VHI policies.
Evidence from the United States shows that the demand for VHI is price-inelastic. 54 (Marquis, Long, 1995; Manning, Marquis, 1989). 15 respectively), which may in part be due to the high level of tax subsidies for VHI in the United States, as well as the fact that most VHI in the United States is employment group rather than individually purchased. 6% of all tax subsidies for VHI (Sheils, Hogan, 1999). 44 (Murillo, González, 1993). This result is to be expected in health care systems where VHI is not heavily subsidized, but it cannot be generalized to other member states.
The figure for the Netherlands may be even higher, as the only data published concern complementary VHI purchased by those insured under the Ziekenfondswet (ZFW). About 93% of those insured under the ZFW purchase complementary VHI (Vektis, 2000). 33 34 Voluntary health insurance in the European Union Table 5. 5% (mainly supplementary) Sources: National reports prepared for this study. WTZ: Wet op de toegang tot Ziektekosteuverzekfringen. VHI instead, they are more likely to remain in the statutory health insurance scheme.