Cabral, Marika
[Verfasser:in]
;
Geruso, Michael
[Sonstige Person, Familie und Körperschaft];
Mahoney, Neale
[Sonstige Person, Familie und Körperschaft]National Bureau of Economic Research
Do Larger Health Insurance Subsidies Benefit Patients or Producers? Evidence from Medicare Advantage
Erschienen:
Cambridge, Mass: National Bureau of Economic Research, September 2014
Erschienen in:NBER working paper series ; no. w20470
Umfang:
1 Online-Ressource
Sprache:
Englisch
DOI:
10.3386/w20470
Identifikator:
Reproduktionsnotiz:
Hardcopy version available to institutional subscribers
Entstehung:
Anmerkungen:
Mode of access: World Wide Web
System requirements: Adobe [Acrobat] Reader required for PDF files
Beschreibung:
A central question in the debate over privatized Medicare is whether increased government payments to private Medicare Advantage (MA) plans generate lower premiums for consumers or higher profits for producers. Using difference-in-differences variation brought about by a sharp legislative change, we find that MA insurers pass through 45% of increased payments in lower premiums and an additional 9% in more generous benefits. We show that advantageous selection into MA cannot explain this incomplete pass-through. Instead, our evidence suggests that market power is important, with premium pass-through rates of 13% in the least competitive markets and 74% in the most competitive