What are consumers willing to pay for a broad network health plan?: Evidence from covered California.

Health Insurance Marketplaces have received considerable attention for their narrow network health plans. Yet, little is known about consumer tastes for network breadth and how they affect plan selection. I estimate demand for health plans in California's Marketplace, Covered California. Using 2017...

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Publicado en:Journal of Health Economics Vol. 65; pp. 63 - 78
Autor principal: Drake, Coleman
Formato: research Journal Article
Publicado: Elsevier B.V. May2019
Acceso en línea:Ver este registro en EBSCOhost
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        atl: What are consumers willing to pay for a broad network health plan?: Evidence from covered California.
      aug:
        au: Drake, Coleman
        affil: Department of Health Policy and Management, Graduate School of Public Health, University of Pittsburgh, A664 Public Health, 130 DeSoto Street, 15261, Pittsburgh, PA, United States
      sug:
        subj:
          Insurance, Health Economics
          Economics Statistics and Numerical Data
          Consumer Satisfaction Economics
          Insurance Economics
          Insurance, Health Statistics and Numerical Data
          Adolescence
          Young Adult
          Consumer Satisfaction Statistics and Numerical Data
          Health Insurance Exchanges Statistics and Numerical Data
          Family Characteristics
          Adult
          California
          Middle Age
          Insurance Statistics and Numerical Data
          Health Insurance Exchanges Economics
          Human
          Economics Economics
          Patient Protection and Affordable Care Act
          Validation Studies
          Comparative Studies
          Evaluation Research
          Multicenter Studies
          Clinical Assessment Tools
          Adolescent: 13-18 years
          Adult: 19-44 years
          Middle Aged: 45-64 years
      ab: Health Insurance Marketplaces have received considerable attention for their narrow network health plans. Yet, little is known about consumer tastes for network breadth and how they affect plan selection. I estimate demand for health plans in California's Marketplace, Covered California. Using 2017 individual enrollment data and provider network directories, I develop a geospatial measure of network breadth that reflects the physical locations of households and network providers. I find that households are sensitive to network breath in their plan choices. Mean willingness to pay for a broad network plan relative to a narrow network plan, defined as a two standard deviation, 17.44 percentage point increase in network breadth, is $45.83 in post-subsidy monthly premiums. Variation in WTP indicates a selection mechanism exists whereby older households sort into broader network plans. I also find that households are highly premium sensitive, which may be a result of plan standardization in Covered California.
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    language: English
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