Selection Stories: Understanding Movement Across Health Plans
This study assesses the factors influencing the movement of people across health plans. We distinguish three types of cost-related transitions: adverse selection, the movement of the less healthy to more generous plans; adverse retention, the tendency for people to stay where they are when they get sick; and aging in place, where lack of all movement makes plans with initially older enrollees increase in cost over time. Using data from the Group Insurance Commission in Massachusetts, we show that aging in place and adverse selection are both quantitatively important. Each can materially impact equilibrium enrollments, especially when premiums to enrollees reflect these costs.
|Date of creation:||2009|
|Date of revision:|
|Publication status:||Published in HKS Faculty Research Working Paper Series|
|Contact details of provider:|| Postal: 79 JFK Street, Cambridge, MA 02138|
Web page: http://www.hks.harvard.edu/
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in: Frontiers in Health Policy Research, Volume 1, pages 1-32
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- Altman, Daniel & Cutler, David & Zeckhauser, Richard J., 2003.
"Enrollee Mix, Treatment Intensity, and Cost in Competing Indemnity and HMO Plans,"
2664300, Harvard University Department of Economics.
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7176, National Bureau of Economic Research, Inc.
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NBER Working Papers
14153, National Bureau of Economic Research, Inc.
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- McClellan, Mark & Cutler, David & Newhous, Joseph P., 2000. "How Does Managed Care Do It?," Scholarly Articles 2643884, Harvard University Department of Economics.
- Anne Beeson Royalty & Neil Solomon, 1999. "Health Plan Choice: Price Elasticities in a Managed Competition Setting," Journal of Human Resources, University of Wisconsin Press, vol. 34(1), pages 1-41.
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