ORCID: https://orcid.org/0000-0003-2460-619X
(2013):
Plan selection in Medicare Part D: Evidence from administrative data.
In: Journal of Health Economics, Vol. 32, No. 6: pp. 1325-1344
This is the latest version of this item.
Abstract
We study the Medicare Part D prescription drug insurance program as a bellwether for designs of private, non-mandatory health insurance markets, focusing on the ability of consumers to evaluate and optimize their choices of plans. Our analysis of administrative data on medical claims in Medicare Part D suggests that fewer than 25\% of individuals enroll in plans that are ex ante as good as the least cost plan specified by the Plan Finder tool made available to seniors by the Medicare administration, and that consumers on average have expected excess spending of about 300 per year, or about 15\% of expected total out-of-pocket cost for drugs and Part D insurance. These numbers are hard to reconcile with decision costs alone; it appears that unless a sizeable fraction of consumers place large values on plan features other than cost, they are not optimizing effectively.
Item Type: | Journal article |
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Faculties: | Economics Economics > Chairs > Chair of Empirical Economics |
Subjects: | 300 Social sciences > 330 Economics |
Language: | English |
Item ID: | 19428 |
Date Deposited: | 15. Apr 2014 08:50 |
Last Modified: | 04. Nov 2020 13:01 |
Available Versions of this Item
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Plan Selection in Medicare Part D: Evidence from administrative Data. (deposited 10. Jul 2012 13:05)
- Plan selection in Medicare Part D: Evidence from administrative data. (deposited 15. Apr 2014 08:50) [Currently Displayed]