Selection and Plan Switching Behavior
A majority of employees can choose among health insurance plans of varying generosity. They may switch plans if prices, information, or their health status change. This paper analyzes switching behavior presumptively caused by changes in health status. We show that people who move to a less generous...
| Main Authors: | , , , , |
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| Format: | Article |
| Language: | English |
| Published: |
SAGE Publishing
2006-02-01
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| Series: | Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| Online Access: | https://doi.org/10.5034/inquiryjrnl_43.1.10 |
| _version_ | 1811337728439091200 |
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| author | Rusty Tchernis Sharon-Lise T. Normand Juliana Pakes Peter Gaccione Joseph P. Newhouse |
| author_facet | Rusty Tchernis Sharon-Lise T. Normand Juliana Pakes Peter Gaccione Joseph P. Newhouse |
| author_sort | Rusty Tchernis |
| collection | DOAJ |
| description | A majority of employees can choose among health insurance plans of varying generosity. They may switch plans if prices, information, or their health status change. This paper analyzes switching behavior presumptively caused by changes in health status. We show that people who move to a less generous plan have lower medical spending prior to the switch than the average for the generous plan in which they started, while those who move to a more generous plan appear to anticipate higher spending, which they delay until after the switch. This transfer of costs from a less to a more generous plan increases the burden of adverse selection. Our data suggest that switching may be more important to the level of premiums than previously documented. |
| first_indexed | 2024-04-13T17:59:05Z |
| format | Article |
| id | doaj.art-c7d6bf1cbf7044bf91747c5984140c49 |
| institution | Directory Open Access Journal |
| issn | 0046-9580 |
| language | English |
| last_indexed | 2024-04-13T17:59:05Z |
| publishDate | 2006-02-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| spelling | doaj.art-c7d6bf1cbf7044bf91747c5984140c492022-12-22T02:36:20ZengSAGE PublishingInquiry: The Journal of Health Care Organization, Provision, and Financing0046-95802006-02-014310.5034/inquiryjrnl_43.1.10Selection and Plan Switching BehaviorRusty TchernisSharon-Lise T. NormandJuliana PakesPeter GaccioneJoseph P. NewhouseA majority of employees can choose among health insurance plans of varying generosity. They may switch plans if prices, information, or their health status change. This paper analyzes switching behavior presumptively caused by changes in health status. We show that people who move to a less generous plan have lower medical spending prior to the switch than the average for the generous plan in which they started, while those who move to a more generous plan appear to anticipate higher spending, which they delay until after the switch. This transfer of costs from a less to a more generous plan increases the burden of adverse selection. Our data suggest that switching may be more important to the level of premiums than previously documented.https://doi.org/10.5034/inquiryjrnl_43.1.10 |
| spellingShingle | Rusty Tchernis Sharon-Lise T. Normand Juliana Pakes Peter Gaccione Joseph P. Newhouse Selection and Plan Switching Behavior Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| title | Selection and Plan Switching Behavior |
| title_full | Selection and Plan Switching Behavior |
| title_fullStr | Selection and Plan Switching Behavior |
| title_full_unstemmed | Selection and Plan Switching Behavior |
| title_short | Selection and Plan Switching Behavior |
| title_sort | selection and plan switching behavior |
| url | https://doi.org/10.5034/inquiryjrnl_43.1.10 |
| work_keys_str_mv | AT rustytchernis selectionandplanswitchingbehavior AT sharonlisetnormand selectionandplanswitchingbehavior AT julianapakes selectionandplanswitchingbehavior AT petergaccione selectionandplanswitchingbehavior AT josephpnewhouse selectionandplanswitchingbehavior |