designing an updatable long term health insurance

In this paper, we consider the long-term health insurance (lthi) as a sequence of short-term insurance contracts that the contracting parties negotiate to maximize their desired utility. we consider optimal premium and optimal insurance coverage as the optimal contract, and determine it based on the negotiation model. the negotiation parameter of the optimal contract is determined among the set of pareto-optimal contracts by the nash solution. we use state-contingent bi-linear approach and time series modeling to estimate health costs. we calculate the bootstrap projection interval for the optimal premium in the coming years due to the uncertainty in estimating the parameters of the predictive model. thus, the policyholder is aware of the premium projection interval at the time of contract conclusion.