Can Health Insurance Competition Work? Evidence from Medicare Advantage
Bibliographic Data
| ID | 10176536 |
|---|---|
| Authors | Vilsa Curto (0000-0001-9947-4094, Harvard University Press), Liran Einav (0000-0003-3349-5356, National Bureau of Economic Research), Jonathan Levin (0000-0002-6177-614X, National Bureau of Economic Research), Jay Bhattacharya (0000-0003-3867-3174, National Bureau of Economic Research) |
| Year | 2020 |
| Volume | 129 |
| Issue | 2 |
| Pages | 570-606 |
| Publication date | 2020-10-05 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of Political Economy (JOURNAL) |
| Journal identifiers | ISSN: 0022-3808 • E-ISSN: 1537-534X |
| Publisher | University of Chicago Press (PUBLISHER • US) |
| DOI | 10.1086/711951 |
| OpenAlex | W3118880120 |
| Language | EN |
| Citations received | 2 |
| References cited | 19 |
We estimate the economic surplus created by the Medicare Advantage program under its reformed competitive bidding rules. We use data on the universe of Medicare beneficiaries and develop a model of plan bidding that accounts for both market power and risk selection. We estimate that the Medicare Advantage program generates substantial surplus to participants (of $217 per enrollee-month), but that approximately two-thirds of this surplus is captured by insurers. We use the model to evaluate the impact of possible program changes, including changes that could increase competition and lead to lower profits and higher consumer surplus without raising taxpayer costs
Actuarial science · Bidding · Business · Competition (biology · Economic surplus · Economics · Health care · Health insurance · Health plan · Market power · Medicare Advantage · Microeconomics · Taxpayer · Welfare · Work (physics · Global Health Care Issues · Health Systems, Economic Evaluations, Quality of Life · Healthcare Policy and Management
| Citations per year | 0.67 |
|---|---|
| Citation span | 2023 - 2025 (3) |
| Highly cited | No |