03-01-2019 07:36:35 PM -0800
02-28-2019 01:12:07 PM -0800
02-28-2019 08:28:27 AM -0800
02-27-2019 10:35:18 AM -0800
02-27-2019 08:26:44 AM -0800
It looks like you've previously blocked notifications. If you'd like to receive them, please update your browser permissions.
Desktop Notifications are  | 
Get instant alerts on your desktop.
Turn on desktop notifications?
Remind me later.
PJ Media encourages you to read our updated PRIVACY POLICY and COOKIE POLICY.
X


Gruber: Seniors Should Be Limited to Three Lowest Cost Medicare Part D Plans

Jonathan Gruber

In a 2009 paper, "Choice Inconsistencies Among the Elderly: Evidence from Plan Choice in the Medicare Part D Program," Obamacare advisor Jonathan Gruber argued that there were too many Medicare Part D plans for seniors to choose from, which led them to make bad decisions when enrolling in a plan.

In the paper, written for the National Bureau of Economic Research, Gruber wrote with Jason T. Abaluck that the privatization of the public Medicare program had resulted in dozens of private insurers offering a wide variety of insurance products for seniors to choose from. The result of so many choices, Gruber wrote, is that seniors are not making decisions that are in their best interest. "First, elders place much more weight on plan premiums than they do on the expected out of pocket costs that they will incur under the plan. Second, they substantially under-value variance reducing aspects of alternative plans. Finally, consumers appear to value plan financial characteristics far beyond any impacts on their own financial expenses or risk."

The paper noted that while standard economic theory would suggest that expanded choice is a beneficial plan feature, "There are reasons to believe that the standard model is insufficient, particularly for a population of elders. There is growing interest in behavioral economics in models where agents are better off with a more restricted choice set."