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:8/30/2014)... NJ (PRWEB) August 30, 2014 The ... facilities in New Jersey and even in the U.S. ... that takes inches off of patients’ waists with deep-tissue ... cells in small sections, Vanquish is more inclusive to ... Patients lay comfortably under panels about one inch ...
(Date:8/30/2014)... 30, 2014 After offering hyperbaric ... for the past several years, Dr. Roy Schmidt ... have announced a scholarship program for veterans who ... a meeting held this summer to discuss veterans’ ... reporters have shed light on the large number ...
(Date:8/30/2014)... Calif. (PRWEB) August 30, 2014 Insomnia causes ... helps listeners understand how they unknowingly developed insomnia and the ... restful nights during. Tune in to the show at ... The show airs live on August 30, and will be ... information on programming, go to DrCarolFrancisTalkRadio.com. , "Insomnia ...
(Date:8/30/2014)... "My wife suffered neck, back and spine injuries ... of two inventors from Bethel, Alaska. "The whiplash contributed ... area. She tried other pillows to little avail. The ... comfort and providing extra sleep." , They created a ... head, neck and back comfortably. This enables the user ...
(Date:8/30/2014)... Bringing forth the great opportunities, India's ... Labor Day discount on all SEO services. While working ... services related to internet marketing. Their dedicated team of ... do have a deep understanding for their specialization. This ... and since the inception, they have worked with over ...
Breaking Medicine News(10 mins):Health News:NJ Top Docs Presents, The Plastic Surgery Group 2Health News:Tennessee Hyperbaric Center Offering HBOT Scholarships to Veterans 2Health News:Sleepless Nights, Exhausting Days, Mental Fog – Relief for Insomnia With Clinical Psychologist Dr. Carol Francis 2Health News:Profit By Search Announces Labor Day Discount on SEO Services 2
... simple sugar is in fact a critical regulator of ... when disturbed, this process could contribute to cancer or ... and timing of cell division, the researchers say. , ... used inside cells to modify proteins, turning the proteins ...
... range of user-controlled products that would help women protect ... be developed in any form that is convenient to ... ,These microbicides will enable women to negotiate ... at risk and would also help avoid unwanted pregnancies, ...
... a rare, benign intra-articular lesion of unknown aetiology. //It ... synovium, and forms part of the differential diagnosis for ... 50 cases of Lipoma arborescens have previously been reported, ... of other joints including the hip, shoulder, wrist and ...
... continues to grow and currently affects more that ... emphasize a need for alternative diabetes therapies with ... ,The delivery of insulin by the lung may ... diabetes. However, alternative insulin delivery systems must meet ...
... successful completion of Phase II clinical trials of a novel ... suppressing the immune system has been announced by Researchers at ... chronic, painful disease affecting millions worldwide. It is thrice more ... age. It strikes joints on both sides of the body, ...
... to hold on to technological advancements belived to revolutionise ... of computers to improve the quality and effectiveness of ... has now been proved with authencity that even pateints ... successfully educated about health topics using computers that can ...
Cached Medicine News:Health News:Sugar Helps Control Cell Division 2Health News:Lipoma Arborescens: A Rare Tumor Of The Knee 2Health News:HIIP- A Novel Inhaled Insulin Delivery System As An Alternative To Injectable Insulin Therapy 2Health News:Novel drug holds promise for treatment of Rheumatoid Arthritis 2Health News:Computers Can Teach Patients About Screening for Cancer 2
(Date:8/29/2014)... 29, 2014 Research and Markets ... Development Trend Forecast of Pharmaceutical Equipment Market in China, ... Research and Development Trend Forecast of Pharmaceutical Equipment Market ... China,s pharmaceutical equipment industry in ... competition landscape, and business performance of domestic major enterprises, ...
(Date:8/29/2014)... , August 29, 2014 ... Market by Product & Services (Equipment, Reagent, Primer, ... Application (Diagnostics, PCR, QPCR, Gene Synthesis, NGS, DNA, ... MarketsandMarkets, the global Oligonucleotide Synthesis Market is expected ... Million in 2014, growing at a CAGR of ...
(Date:8/29/2014)... /PRNewswire-iReach/ -- ChemImage will present a workshop focused on ... Forensic Science Society,s 22 nd International Symposium ... Australia .  Forensic Scientists will be in ... imaging can bring to examination procedures. ... Product Development at ChemImage, will host a workshop ...
Breaking Medicine Technology:Research and Development Trend Forecast of Pharmaceutical Equipment Market in China, 2014-2018 2Oligonucleotide Synthesis Market Worth $1,712.1 Million by 2019 2Oligonucleotide Synthesis Market Worth $1,712.1 Million by 2019 3Oligonucleotide Synthesis Market Worth $1,712.1 Million by 2019 4ChemImage to Discuss Hyperspectral Imaging for Forensic Investigation at the ANZFSS 22nd International Symposium on the Forensic Sciences 2ChemImage to Discuss Hyperspectral Imaging for Forensic Investigation at the ANZFSS 22nd International Symposium on the Forensic Sciences 3
... that results from the REMEDEE study ( R andomized ... inal sirolimus coat ED bio- E ... Therapy Stent is non-inferior to the TAXUS® Liberte® paclitaxel-eluting stent, with ... results were presented by Michael Haude, M.D., director of Medical Clinic ...
... University Hospitals (UH) Case Medical Center, Case Western ... today the initiation of a novel Phase I clinical ... hematopoietic stem cells (HSCs) from the dose limiting toxicity ... Americans are diagnosed with glioblastoma every year and only ...
Cached Medicine Technology:REMEDEE Study Meets Primary Endpoint: OrbusNeich's Combo™ Dual Therapy Stent Is Non-Inferior to DES 2REMEDEE Study Meets Primary Endpoint: OrbusNeich's Combo™ Dual Therapy Stent Is Non-Inferior to DES 3REMEDEE Study Meets Primary Endpoint: OrbusNeich's Combo™ Dual Therapy Stent Is Non-Inferior to DES 4Lentigen and UH Case Medical Center Initiate Phase I Trial Using Gene Therapy and Bone Marrow Stem Cells in the Treatment of Brain Cancer 2Lentigen and UH Case Medical Center Initiate Phase I Trial Using Gene Therapy and Bone Marrow Stem Cells in the Treatment of Brain Cancer 3Lentigen and UH Case Medical Center Initiate Phase I Trial Using Gene Therapy and Bone Marrow Stem Cells in the Treatment of Brain Cancer 4
... reference laboratory and a worldwide leader in ... an extensive test menu of highly complex ... anatomic pathology. Owned by the University of ... half of the nation's university teaching hospitals ...
... reference laboratory and a worldwide leader in ... an extensive test menu of highly complex ... anatomic pathology. Owned by the University of ... half of the nation's university teaching hospitals ...
... reference laboratory and a worldwide leader in ... an extensive test menu of highly complex ... anatomic pathology. Owned by the University of ... half of the nation's university teaching hospitals ...
... System is a panel mounted system that offers ... needs of the heath care professional using the ... available with a dual action lever that allows ... to an IV pole. Similarly, it features ...
Medicine Products: