Estimating Equilibrium in Health Insurance Exchanges: Price Competition and Subsidy Design under the ACA.

Regulations to design private yet publicly sponsored health insurance markets are increasingly adopted in many OECD countries. Here I combine data and economic theory to analyse the interaction between insurers' competition and the design of premium subsidies in determining equilibrium outcomes. My...

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Publicado en:Review of Economic Studies Vol. 92; no. 1; pp. 586 - 621
Autor principal: Tebaldi, Pietro
Formato: Artículo
Publicado: Oxford University Press / USA Jan2025
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: Estimating Equilibrium in Health Insurance Exchanges: Price Competition and Subsidy Design under the ACA.
      aug:
        au: Tebaldi, Pietro
        affil: Department of Economics, Columbia University and NBER, USA
      su:
        Health insurance exchanges
        Insurance companies
        Patient Protection & Affordable Care Act
        Economic statistics
        Health care reform
      sug:
        subj:
          Other Direct Insurance (except Life, Health, and Medical) Carriers
          Direct Health and Medical Insurance Carriers
          Direct group life, health and medical insurance carriers
          Insurance Agencies and Brokerages
          Health insurance exchanges
          Insurance companies
          Patient Protection & Affordable Care Act
          Economic statistics
          Health care reform
      keyword:
        ACA
        Health exchanges
        Health insurance
        Healthcare reform
        Subsidies
        ACA
        Health exchanges
        Health insurance
        Healthcare reform
        Subsidies
      ab: Regulations to design private yet publicly sponsored health insurance markets are increasingly adopted in many OECD countries. Here I combine data and economic theory to analyse the interaction between insurers' competition and the design of premium subsidies in determining equilibrium outcomes. My empirical model includes adverse selection, rich heterogeneity in preferences for vertically and horizontally differentiated plans and accommodates alternative assumptions on pricing conduct. In the context of the Affordable Care Act in the U.S. I estimate the joint distribution of preferences and expected cost using Californian administrative records on 3.4 million plan choices between 2014 and 2017, combined with plan and survey data on medical claims. An empirical horse race between conduct assumptions favours oligopoly pricing over perfect competition. Considering alternative subsidy designs shows that, in equilibrium, shifting subsidy generosity toward the "young invincibles" would lower premiums for all enrolees while increasing enrolment and profits.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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