Navigation Links
New insight into how people choose insurance plans
Date:2/27/2013

east.

Thus insurers, or at least those who expect that offering more high-deductible plans will lower their expenses, may experience smaller spending changes than they might expect if a random group of people were assigned to such plans.

"What we [find] is that if you base your forecasts on random assignment, you would substantially overestimate the spending reduction you can get by introducing high-deductible plans," says Finkelstein, the Ford Professor of Economics at MIT. "The people who select these plans aren't randomly drawn from the population they tend to be people who have a lower behavioral response to the [insurance] contract."

Anticipating changes in behavior

To grasp this dynamic at work, Finkelstein suggests an analogy to an all-you-can-eat restaurant where the customers are there for two reasons: one group with consistently robust appetites, and another group who, by not having to pay a la carte, can have a larger meal than usual at a decent price. When it comes to health care, she suggests, consumers can also be divided into two similar categories: those who consistently seek a lot of coverage, and those who, given greater coverage, will change their behavior, and suddenly use much more medical care.

But how much more care do people in the second group seek? The paper, "Selection on Moral Hazard in Health Insurance," published this month in the American Economic Review, answers that question by scrutinizing health-plan choices made between 2003 and 2006 by more than 4,000 employees at Alcoa, the global aluminum producer. The researchers were able to assess the overall health status of individuals, the health-plan choices employees made when switching coverage, and subsequent medical claims. The varying Alcoa plans offered different deductibles, but used the same network of health-care providers, meaning consumer choices were heavily based on financial concerns.

By analyzing the d
'/>"/>

Contact: Sarah McDonnell
s_mcd@mit.edu
617-827-7637
Massachusetts Institute of Technology
Source:Eurekalert

Page: 1 2 3

Related medicine news :

1. From a Failed Vaccine, New Insights Into Fighting HIV
2. Clinical insight improves treatment with new lung cancer drug
3. New insights into when beach sand may become unsafe for digging and other contact
4. How does the immune system fight off threats to the brain? New research yields fresh insight
5. Understanding and promoting mental health - Insights from psychological science
6. Aggregating instead of stabilizing: New insights into the mechanisms of heart disease
7. Cancer Patients Share Web Info With Docs for Insight, Advice
8. Drug addiction study offers new insight on compulsive behavior
9. Better treatment for brain cancer revealed by new molecular insights
10. Scientists at the Mainz University Medical Center gain new insights into Taspase1 function
11. Feces fossils lend new insights into connection between Native-Americans, diabetes
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/18/2015)... NY (PRWEB) April 18, 2015 On April ... Security Threat Report , which they say, “exposes a tactical ... many new malware variants were introduced in 2014 - almost ... for Zero Day threats to be identified and patched by ... is abundantly clear that doing business in a digital world ...
(Date:4/18/2015)... Tampa, FL (PRWEB) April 18, 2015 ... for Hillsborough County, along with 11 other secure destruction ... Certified Secure Destruction Specialists (CSDS). He will now display ... Two exams were offered before the National Association of ... Chicago, Illinois and another Grapevine, Texas. Of the 20 ...
(Date:4/17/2015)... 17, 2015 John Evans, a Gardant ... the Patio from 2 p.m. to 3 p.m. on ... 1320 Executive Ct. in Pekin, Illinois, serves older adults ... some help to maintain their independence. , Becky Baker ... treats will be served during the luau. , For ...
(Date:4/17/2015)... Riviera Magazine has featured board ... the Gallery of Cosmetic Surgery in Newport Beach, California ... The publication focused on his expertise in the lower ... eyelid surgery, laser resurfacing and rhinoplasty. , Dr. Sadati’s ... resulted in thousands of satisfied patients across the globe. ...
(Date:4/17/2015)... “We have seen healing, a lot of healing, and ... Chaplain Shawn Kafader of Friendship Village. “People have found ... to contribute have created beautiful pieces of art.” For the ... program that was launched to benefit residents of the retirement ... the Art Institute in Chicago, worked as an intern at ...
Breaking Medicine News(10 mins):Health News:Cyber Attackers Continue to Fine Tune Deception and Stealth Tactics According to New Report 2Health News:Cyber Attackers Continue to Fine Tune Deception and Stealth Tactics According to New Report 3Health News:Cyber Attackers Continue to Fine Tune Deception and Stealth Tactics According to New Report 4Health News:Cyber Attackers Continue to Fine Tune Deception and Stealth Tactics According to New Report 5Health News:John Evans Supportive Living Community Prepares for Party on the Patio 2Health News:Orange County Facial Plastic Surgeon Featured in Premier Magazine Focused on Beauty 2Health News:Orange County Facial Plastic Surgeon Featured in Premier Magazine Focused on Beauty 3Health News:Healing At Friendship Village Due To Art Therapy 2
... the future patient’s who had suffered cardiac death would ... still alive//. ,The Australian Health Ethics Committee ... extend the transplant preparations to patients who are certain ... because solid organs like the heart, liver lungs and ...
... no positive doping tests at this year's World Cup till ... medical officer Jiri Dvorak confirmed that with 62 of 64 ... number of injuries to players had dropped compared to the ... were 134 injuries noted in the 60 World Cup matches ...
... California, San Diego have found that the main color differences ... on the barrier islands to blend in with the white ... ,Their discovery, detailed in the July 7 issue of the ... a small change in a single nucleotide—the smallest subunit of ...
... Clinic and the Department of Health and Human Services, ... sign a Memorandum of Understanding pledging to collaborate in ... other diseases in American Indian and Alaska Native communities. ... ceremonial elements, including drummers and a color guard. It ...
... the Rostock Center for the study of Demographic Change, ... will be //soon reduced, if the trend of low ... ,The Rostock Center is a research ... Institute for Demographic Research and the University of Rostock. ...
... of Kansas State University, Doug Goodin, makes use of ... and land cover //changes on human health and food ... sensing with other types of data, to monitor and ... scientists he recently discussed this subject at the workshop, ...
Cached Medicine News:Health News:Genetic Mutation in Mice Suggests Extinct Mammoth Had Light and Dark Fur 2Health News:Genetic Mutation in Mice Suggests Extinct Mammoth Had Light and Dark Fur 3Health News:Mayo Clinic and Indian Health Service Form Clinical Practice Collaboration 2Health News:Demographic Change Demand a New Life-Course for Aging Society 2Health News:Satellite Imagery to monitor the Social Impact Of Geographical Changes 2
(Date:4/17/2015)... 2015 CVS Health Corporation (NYSE: CVS ... May 1, 2015, at 8:30 a.m. (EDT) with analysts ... An audio webcast of the conference call ... of the CVS Health website for all interested parties. ... webcast will be archived and available on the web ...
(Date:4/17/2015)... , April 17, 2015  In Detroit, where three out ... rate is two and one half times of the national ... of 10 infants that die in Detroit ... statistics that Covenant Community Care, a faith-based, charitable non-profit Community ... to change thanks to a charitable donation by Konica Minolta ...
(Date:4/17/2015)... -- Today, the Pharmaceutical Research and Manufacturers of ... companies as "We Work For Health Champions" for ... service. Established in 2009, the We ... the biopharmaceutical industry to honor employees who have ... also shown an outstanding commitment to their communities ...
Breaking Medicine Technology:Covenant Community Care to Receive Donated SONIMAGE P3 Handheld Ultrasound from Konica Minolta Medical Imaging 2Covenant Community Care to Receive Donated SONIMAGE P3 Handheld Ultrasound from Konica Minolta Medical Imaging 3Covenant Community Care to Receive Donated SONIMAGE P3 Handheld Ultrasound from Konica Minolta Medical Imaging 4PhRMA Applauds 2015 We Work For Health Champion Award Winners 2PhRMA Applauds 2015 We Work For Health Champion Award Winners 3
... 12, 2011 Lanx ® , Inc., a privately ... innovative devices for spinal surgery, today announced the launch ... 2011 American Association of Neurological Surgeons (AANS) Annual Meeting, ... a minimally invasive fixation alternative to pedicle screws, intended ...
... AUCKLAND, New Zealand, April 12, 2011 Living Cell ... pioneering the development of a cell implant therapy to ... an agreement to raise A$3 million through a placement ... research and manufacturing arm of the Otsuka group of ...
Cached Medicine Technology:Lanx®, Inc. Announces Launch of Concero™ Facet Screw System for Spinal Fusion 2LCT and Otsuka of Japan Share Common DIABECELL(R) Vision 2LCT and Otsuka of Japan Share Common DIABECELL(R) Vision 3LCT and Otsuka of Japan Share Common DIABECELL(R) Vision 4LCT and Otsuka of Japan Share Common DIABECELL(R) Vision 5
... designed to accept rigid fixation ... an excellent reconstructive option for ... blowout defects. Each design has ... one or more rigid fixation ...
Medpor Complete Orbit are designed to replace non load bearing bony structures in the orbital area....
... Medpor Inferior Orbital Rim implant can provide ... is designed to be trimmed to meet ... small flange allows it to rest on ... floor. This flange allows easier positioning of ...
The new Inferior Medial Orbital Rim Implant (IMORI) provides surgeons with an excellent alternative for patients with a deficient or recessed "tear trough" area often characterized as a look of fatig...
Medicine Products: