Nber Working Paper Series Choice Inconsistencies among the Elderly: Evidence from Plan Choice in the Medicare Part D Program
نویسندگان
چکیده
We are grateful to Amy Finkelstein, Panle Jia, Jerry Hausman and seminar participants at Boston University, Carnegie Mellon University, Duke, MIT and the NBER for helpful comments; to Jim Hendrix, Chris Messner, Pallavi Mudumby, Steven Pieri and John Porell from Wolters Kluwer for providing data; to Matthew Harding for providing Matlab code, to Iuliana Pascu, Arnaldo Pereira, Charles Wu, Josephine Duh and particularly John Graves and Natalija Novta for research assistance; and to the National Institute of Aging for financial support.The views expressed herein are those of the author(s) and do not necessarily reflect the views of the National Bureau of Economic Research.
منابع مشابه
Choice Inconsistencies among the Elderly: Evidence from Plan Choice in the Medicare Part D Program
1180 The Medicare Modernization Act of 2003, better known as the legislation that added the Part D prescription drug benefit to the Medicare program, represents the single most significant expansion of public insurance programs in the US in the past 40 years. The most novel, and controversial, feature of this legislation was the use of multiple private insurance providers to deliver this new pu...
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Consumers' enrollment decisions in Medicare Part D can be explained by Abaluck and Gruber’s (2011) model of utility maximization with psychological biases or by a neoclassical version of their model that precludes such biases. We evaluate these competing hypotheses by applying nonparametric tests of utility maximization and model validation tests to administrative data. We find that 79 percent ...
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Neoclassical and psychological models of consumer behavior often make divergent predictions for the welfare effects of paternalistic policies, leaving wide scope for researchers’ choice of a model to influence their policy conclusions. We develop a framework to reduce this model uncertainty and apply it to administrative data on consumer decision making in Medicare Part D. Consumers’ choices fo...
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We explore the in- and out-of-sample robustness of tests for choice inconsistencies based on parameter restrictions in parametric models, focusing on tests proposed by Ketcham, Kuminoff, and Powers (2016). We argue that their nonparametric alternatives are inherently conservative with respect to detecting mistakes. We then show that our parametric model is robust to KKP's suggested specificatio...
متن کاملHeterogeneity in Choice Inconsistencies Among the Elderly: Evidence from Prescription Drug Plan Choice.
This paper investigates the degree to which choice inconsistencies documented in the context of Medicare Part D plan choice vary across consumers and geographic regions. Our main finding is that there is surprisingly little variation: regardless of age, gender, predicted drug expenditures or the predictability of drug demand consumers underweight out of pocket costs relative to premiums and fai...
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