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Enrollment in Medicare Advantage Plans in Miami-Dade County: Evidence of Status Quo Bias?

Author

Listed:
  • Anna D. Sinaiko
  • Christopher C. Afendulis
  • Richard G. Frank

Abstract

Evidence from behavioral economics reveals that decision-making in health care settings can be affected by circumstances and choice architecture. This paper conducts an analysis of choice of private Medicare plans (Medicare Advantage plans) in Miami-Dade County. We provide a detailed description of the choice of MA plans available in Miami over much of the program's history and the composition of Medicare beneficiaries in Miami over the 2000s. Our analysis suggests that first becoming eligible for Medicare is the key transition point for MA, and that there is significant status quo bias in the MA market. This consumer behavior has important implications for policy that regulates the MA market.

Suggested Citation

  • Anna D. Sinaiko & Christopher C. Afendulis & Richard G. Frank, 2013. "Enrollment in Medicare Advantage Plans in Miami-Dade County: Evidence of Status Quo Bias?," NBER Working Papers 19639, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:19639
    Note: AG EH
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    References listed on IDEAS

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    1. Jason Abaluck & Jonathan Gruber, 2011. "Choice Inconsistencies among the Elderly: Evidence from Plan Choice in the Medicare Part D Program," American Economic Review, American Economic Association, vol. 101(4), pages 1180-1210, June.
    2. Beshears, John & Choi, James J. & Laibson, David & Madrian, Brigitte C., 2008. "How are preferences revealed?," Journal of Public Economics, Elsevier, vol. 92(8-9), pages 1787-1794, August.
    3. Frank, Richard G. & Lamiraud, Karine, 2009. "Choice, price competition and complexity in markets for health insurance," Journal of Economic Behavior & Organization, Elsevier, vol. 71(2), pages 550-562, August.
    4. repec:mpr:mprres:5928 is not listed on IDEAS
    5. Samuelson, William & Zeckhauser, Richard, 1988. "Status Quo Bias in Decision Making," Journal of Risk and Uncertainty, Springer, vol. 1(1), pages 7-59, March.
    6. Strombom, Bruce A. & Buchmueller, Thomas C. & Feldstein, Paul J., 2002. "Switching costs, price sensitivity and health plan choice," Journal of Health Economics, Elsevier, vol. 21(1), pages 89-116, January.
    7. repec:mpr:mprres:7476 is not listed on IDEAS
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    Cited by:

    1. Sinaiko, Anna & Zeckhauser, Richard, 2016. "Enrollee Choices after Their Health Plans Are Terminated: Default Effects versus Persistent Preferences," Working Paper Series rwp16-055, Harvard University, John F. Kennedy School of Government.
    2. Michael Geruso & Timothy Layton, 2020. "Upcoding: Evidence from Medicare on Squishy Risk Adjustment," Journal of Political Economy, University of Chicago Press, vol. 128(3), pages 984-1026.
    3. Christopher Afendulis & Anna Sinaiko & Richard Frank, 2014. "Dominated Choices and Medicare Advantage Enrollment," NBER Working Papers 20181, National Bureau of Economic Research, Inc.
    4. Sai Krishnan S. & Subramanian S. Iyer & Sai Balaji SMR, 2022. "Insights from behavioral economics for policymakers of choice‐based health insurance markets: A scoping review," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 25(2), pages 115-143, June.
    5. Florian Heiss & Daniel McFadden & Joachim Winter & Amelie Wuppermann & Bo Zhou, 2016. "Inattention and Switching Costs as Sources of Inertia in Medicare Part D," NBER Working Papers 22765, National Bureau of Economic Research, Inc.
    6. Atherly Adam & van den Broek-Altenburg Eline & Feldman Roger D. & Dowd Bryan, 2020. "Switching Costs in Medicare Advantage," Forum for Health Economics & Policy, De Gruyter, vol. 23(1), pages 1-14, June.
    7. Afendulis, Christopher C. & Sinaiko, Anna D. & Frank, Richard G., 2015. "Dominated choices and Medicare Advantage enrollment," Journal of Economic Behavior & Organization, Elsevier, vol. 119(C), pages 72-83.

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    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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