EconPapers    
Economics at your fingertips  
 

Plan selection in Medicare Part D: Evidence from administrative data

Florian Heiss, Adam Leive, Daniel McFadden and Joachim Winter ()

Munich Reprints in Economics from University of Munich, Department of Economics

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.

Date: 2013
References: Add references at CitEc
Citations View citations in EconPapers (31) Track citations by RSS feed

Published in Journal of Health Economics 6 32(2013): pp. 1325-1344

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Plan selection in Medicare Part D: Evidence from administrative data (2013) Downloads
Working Paper: Plan Selection in Medicare Part D: Evidence from Administrative Data (2012) Downloads
Working Paper: Plan Selection in Medicare Part D: Evidence from administrative Data (2012) Downloads
Working Paper: Plan selection in Medicare Part D: Evidence from administrative data (2012) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:19428

Access Statistics for this paper

More papers in Munich Reprints in Economics from University of Munich, Department of Economics Ludwigstr. 28, 80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Tamilla Benkelberg ().

 
Page updated 2018-11-07
Handle: RePEc:lmu:muenar:19428