Enrollment in Medicare Advantage Plans in Miami-Dade County: Evidence of Status Quo Bias?
Evidence from behavioral economics reveals that decision-making in health care settings can be affected by circumstances and choice architecture. This paper conducts an analysis of choice of private Medicare plans (Medicare Advantage plans) in Miami-Dade County. We provide a detailed description of the choice of MA plans available in Miami over much of the program's history and the composition of Medicare beneficiaries in Miami over the 2000s. Our analysis suggests that first becoming eligible for Medicare is the key transition point for MA, and that there is significant status quo bias in the MA market. This consumer behavior has important implications for policy that regulates the MA market.
The authors gratefully acknowledge funding from the National Institute of Aging through P01 AG032952, The Role of Private Plans in Medicare. Portions of these results were presented at the Academy Health Annual Research Meeting held in Baltimore, MD in June 2013. An abbreviated version of this paper has been accepted for publication by Inquiry. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Anna D. Sinaiko & Christopher C. Afendulis & Richard G. Frank, 2013. "Enrollment in Medicare Advantage Plans in Miami-Dade County," INQUIRY: The Journal of Health Care Organization, Provision, and Financing, vol 50(3), pages 202-215.