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Selection Stories: Understanding Movement Across Health Plans / David M. Cutler, Bryan Lincoln, Richard J. Zeckhauser.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Cutler, David M.
Contributor:
National Bureau of Economic Research.
Lincoln, Bryan.
Zeckhauser, Richard J.
Series:
Working Paper Series (National Bureau of Economic Research) no. w15164.
NBER working paper series no. w15164
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Other Title:
Selection Stories
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2009.
Summary:
This study assesses the factors influencing the movement of people across health plans. We distinguish three types of cost-related transitions: adverse selection, the movement of the less healthy to more generous plans; adverse retention, the tendency for people to stay where they are when they get sick; and aging in place, where lack of all movement makes plans with initially older enrollees increase in cost over time. Using data from the Group Insurance Commission in Massachusetts, we show that aging in place and adverse selection are both quantitatively important. Each can materially impact equilibrium enrollments, especially when premiums to enrollees reflect these costs.
Notes:
Print version record
July 2009.

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