Can Markets for Health Insurance Work?. Jonathan Levin Gaston Eyskens Lectures November 2013. Roadmap. Lectures Technology and Asymmetric Information High Risk Consumer Credit Markets Measuring Inefficiencies from Adverse Selection Can Markets for Health Insurance Work?. Introduction.
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Gaston Eyskens Lectures
High risk beneficiaries are less likely to enroll in private plans.
Mortality notably lower among new MA enrollees.
Private plans are more aggressive in coding diseases.
CMS pays plan b
Enrollee pays 0
CMS pays plan B
Enrollee pays b-B
And CMS pays plan a “rebate” ¾*(B-b) that it passes to consumer in as higher benefits.
Includes characteristics: plan star rating, indicators for part D & supplementary benefits.