Mortality Effects and Choice Across Private Health Insurance Plans
Using a novel instrumental variables framework, researchers quantify the variation in causal mortality effects across plans and measure how much consumers attend to this variation. They find large differences in mortality rates of Medicare Advantage plans, and that such rates are uncorrelated with existing quality ratings. Analysis showed that when plans with high mortality rates become unavailable, enrollees tend to switch to more typical plans and subsequently experience lower mortality, an influential finding in the health care space.
Abstract and Citation
Jason Abaluck, Mauricio Caceres Bravo, Peter Hull, Amanda Starc, Mortality Effects and Choice Across Private Health Insurance Plans, The Quarterly Journal of Economics, Volume 136, Issue 3, August 2021, Pages 1557–1610