1 option
Can Health Insurance Competition Work? Evidence from Medicare Advantage / Vilsa Curto, Liran Einav, Jonathan Levin, Jay Bhattacharya.
- Format:
- Book
- Author/Creator:
- Curto, Vilsa.
- Series:
- Working Paper Series (National Bureau of Economic Research) no. w20818.
- NBER working paper series no. w20818
- Language:
- English
- Physical Description:
- 1 online resource: illustrations (black and white);
- Place of Publication:
- Cambridge, Mass. National Bureau of Economic Research 2014.
- Summary:
- We estimate the economic surplus created by Medicare Advantage under its reformed competitive bidding rules. We use data on the universe of Medicare beneficiaries, and develop a model of plan bidding that accounts for both market power and risk selection. We find that private plans have costs around 12% below fee-for-service costs, and generate around $50 dollars in surplus on average per enrollee-month, after accounting for the disutility due to enrollees having more limited choice of providers. Taxpayers provide a large additional subsidy, and insurers capture most of the private gains. We use the model to evaluate possible program changes.
- Notes:
- Print version record
- December 2014.
The Penn Libraries is committed to describing library materials using current, accurate, and responsible language. If you discover outdated or inaccurate language, please fill out this feedback form to report it and suggest alternative language.