Favorable Selection in the Medicare+Choice Program: New Evidence

A Structural Model of Health Plan Choice and Health Care Demand in the Medicare Managed Care Program

I examine the joint determination of health plan choice and subsequent health care utilization in the Medicare managed care and supplemental insurance markets. The objectives are to evaluate the welfare impact of the Medicare managed care program taking into account the effect of endogenous selection, and to advance the applied literature on health plan choice and health care demand. Standard m...

Risk Selection and Benefits in the Medicare+Choice Program

We estimate the relation between enhanced benefits offered by the Medicare+Choice (M+C) plan in 1999 and a measure of risk selection based on inpatient encounter data. Higher risks are attracted to plans that offer outpatient drug coverage. The risk score increases by 2.2 percent for drug coverage with an annual limit less than $800 and by 3.6 percent for coverage with a limit more than $800. H...

Steps to reduce favorable risk selection in medicare advantage largely succeeded, boding well for health insurance exchanges.

Within Medicare, the Medicare Advantage program has historically attracted better risks-healthier, lower-cost patients-than has traditional Medicare. The disproportionate enrollment of lower-cost patients and avoidance of higher-cost ones during the 1990s-known as favorable selection-resulted in Medicare's spending more per beneficiary who enrolled in Medicare Advantage than if the enrollee had...

Does Risk Adjustment Reduce Selection in the Private Health Insurance Market? New Evidence from the Medicare Advantage Program

Choice Inconsistencies among the Elderly: Evidence from Plan Choice in the Medicare Part D Program

1180 The Medicare Modernization Act of 2003, better known as the legislation that added the Part D prescription drug benefit to the Medicare program, represents the single most significant expansion of public insurance programs in the US in the past 40 years. The most novel, and controversial, feature of this legislation was the use of multiple private insurance providers to deliver this new pu...