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Evolving Choice Inconsistencies in Choice of Prescription Drug Insurance
NBER Working Paper Series, 2013-06, p.19163
Copyright National Bureau of Economic Research, Inc. Jun 2013 ;ISSN: 0898-2937 ;DOI: 10.3386/w19163
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Title:
Evolving Choice Inconsistencies in Choice of Prescription Drug Insurance
Author:
Abaluck, Jason
;
Gruber, Jonathan
Subjects:
Benefit cost analysis
;
Cost control
;
Economics of Aging
;
Economics of Health
;
Health insurance
;
Medicaid
;
Medicare
;
Out of pocket costs
;
Patient Protection & Affordable Care Act 2010-US
;
Prescription drug plans
;
Prescription drugs
;
Public Economics
;
Studies
Is Part Of:
NBER Working Paper Series, 2013-06, p.19163
Description:
We study choice over prescription insurance plans by the elderly using government administrative data to evaluate how these choices are made and evolve over time. We find that there is large "foregone savings" from not choosing the lowest cost plan that has grown over time. We develop a structural framework that allows us to exactly decompose the changes in "foregone welfare" from inconsistent choices into supply and demand side factors. We find that foregone welfare increases over time due primarily to supply-side factors such as premiums and out-of-pocket costs; we estimate little learning at either the individual or cohort level.
Publisher:
Cambridge: National Bureau of Economic Research
Language:
English
Identifier:
ISSN: 0898-2937
DOI: 10.3386/w19163
Source:
Alma/SFX Local Collection
ProQuest Central
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