Replication data for: Do Larger Health Insurance Subsidies Benefit Patients or Producers? Evidence from Medicare Advantage

Principal Investigator(s): View help for Principal Investigator(s) Marika Cabral; Michael Geruso; Neale Mahoney

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Replication-final			10/12/2019 05:16:AM
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Project Citation:

Cabral, Marika, Geruso, Michael, and Mahoney, Neale. Replication data for: Do Larger Health Insurance Subsidies Benefit Patients or Producers? Evidence from Medicare Advantage. Nashville, TN: American Economic Association [publisher], 2018. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-12. https://doi.org/10.3886/E113099V1

Project Description

Summary: A central question in the debate over privatized Medicare is whether increased government payments to private Medicare Advantage (MA) plans generate lower premiums for consumers or higher profits for producers. Using difference-in-differences variation brought about by a sharp legislative change, we find that MA insurers pass through 45 percent of increased payments in lower premiums and an additional 9 percent in more generous benefits. We show that advantageous selection into MA cannot explain this incomplete pass-through. Instead, our evidence suggests that market power is important, with premium pass-through rates of 13 percent in the least competitive markets and 74 percent in the most competitive.

Scope of Project

JEL Classification:
      G22 Insurance; Insurance Companies; Actuarial Studies
      H51 National Government Expenditures and Health
      I11 Analysis of Health Care Markets
      I13 Health Insurance, Public and Private
      I18 Health: Government Policy; Regulation; Public Health

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V1 [2019-10-12]

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