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The empirical analysis reveals that S&P required higher standards to assign a rating similar to the one assigned by A.M. Best and that higher-than-average quality insurers in each rating category of A.M. Best chose to receive a second rating from S&P.
Interested in 'paying for quality,' insurers have agreed to providing greater financial reward to those systems passing accreditation standards.
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At worst, it would simply add a high-cost, mediocre-quality insurer to a market already crowded with them.
To improve the quality of insurers' risk pools, it forced everybody, including the young and the healthy, to purchase coverage.
The NCQA started by monitoring the quality of insurers' health-care plans, but has branched out to include assessments of medical provision.
Competition is expected to take place on the basis of prices (premiums), the service quality of insurers, and the quality of the care providers that they contract [ 3].
Also, a range of quality of life insurers would have to be included.
"The quality of the insurers' capital and their heavy dependence on the banks has become a serious concern," said Runa Ichihari, a credit analyst at Standard & Poor's in Tokyo.
If quality reporting improves, insurers may become more confident in restricting access to low quality providers without disenfranchising consumers [ 30].
Yet, little consideration has been given to the relationship between trust and service quality of health insurers in a complaint handling situation, which is also relevant for other countries that have adapted a system of managed competition.
One study found that insurers, quality assurance programs and regulatory agencies are important incentives to improve health and safety [ 5], while another found that owners do not trust government agencies or consultants and seek input on environmental improvements only from suppliers, other owners and customers [ 6].
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com