Insurance Purchases of Older Americans
dc.contributor.author | Arapakis, Karolos | |
dc.contributor.author | French, Eric | |
dc.contributor.author | Jones, John Bailey | |
dc.contributor.author | McCauley, Jeremy | |
dc.date.accessioned | 2024-06-27T15:05:25Z | |
dc.date.available | 2024-06-27T15:05:25Z | |
dc.date.issued | 2023-03 | |
dc.identifier.citation | Arapakis, Karolos, Eric French, John Bailey Jones, and Jeremy McCauley. 2023. “Insurance Purchases of Older Americans.” Ann Arbor, MI. University of Michigan Retirement and Disability Research Center (MRDRC) Working Paper; MRDRC WP 2023-463. https://mrdrc.isr.umich.edu/publications/papers/pdf/wp463.pdf | en_US |
dc.identifier.uri | https://hdl.handle.net/2027.42/193963 | en |
dc.description.abstract | Using data from the Health and Retirement Study (HRS) matched to administrative Medicare and Medicaid records, and the Medical Expenditure Panel Survey (MEPS), we estimate the determinants of Medigap insurance purchases of older Americans. Our data and framework allow us to consider multiple reasons individuals do not purchase Medigap insurance: (i) adverse selection caused by those in poorer health purchasing Medigap; (ii) crowd out due to Medicaid insurance coverage or the option to default on future medical debt; (iii) behavioral factors such as risk tolerance and cognition. We find that those who purchase Medigap spend approximately $2,300 more than those who do not. However, we find no evidence that this higher spending is caused by adverse selection in this market and only modest evidence that crowd out and behavioral factors are important for understanding Medigap purchases. Our results are consistent with the view that this higher spending is caused by moral hazard driven by the lower out-of-pocket prices for additional care faced by those with Medigap. | en_US |
dc.description.sponsorship | The Social Security Administration through the Michigan Retirement and Disability Research Center award RDR18000002-03, UM21-09 | en_US |
dc.language.iso | en_US | en_US |
dc.relation.ispartofseries | MRDRC WP 2023-463 | en_US |
dc.subject | medical spending, Medicaid, Medicare, economic security, insurance | en_US |
dc.title | Insurance Purchases of Older Americans | en_US |
dc.title.alternative | The Impact of Medical Spending Shocks on the Wealth and Insurance Purchases of Older Americans | en_US |
dc.type | Working Paper | en_US |
dc.subject.hlbsecondlevel | Population and Demography | |
dc.subject.hlbtoplevel | Social Sciences | |
dc.contributor.affiliationum | Michigan Retirement Research Center | en_US |
dc.contributor.affiliationum | Michigan Retirement and Disability Research Center | en_US |
dc.contributor.affiliationother | Center for Retirement Research at Boston College | en_US |
dc.contributor.affiliationother | University of Cambridge and Institute for Fiscal Studies | en_US |
dc.contributor.affiliationother | Federal Reserve Bank of Richmond | en_US |
dc.contributor.affiliationother | University of Bristol | en_US |
dc.contributor.affiliationumcampus | Ann Arbor | en_US |
dc.description.bitstreamurl | http://deepblue.lib.umich.edu/bitstream/2027.42/193963/1/wp463[1].pdf | |
dc.identifier.doi | https://dx.doi.org/10.7302/23445 | |
dc.description.filedescription | Description of wp463[1].pdf : working paper | |
dc.description.depositor | SELF | en_US |
dc.working.doi | 10.7302/23445 | en_US |
dc.owningcollname | Retirement and Disability Research Center, Michigan (MRDRC) |
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