scholarly journals Screening in Contract Design: Evidence from the ACA Health Insurance Exchanges

2016 ◽  
Author(s):  
Michael Geruso ◽  
Timothy J. Layton
Keyword(s):  
Health Insurance ◽  
Contract Design ◽  
Insurance Exchanges

scholarly journals Screening in Contract Design: Evidence from the ACA Health Insurance Exchanges

2019 ◽  
Vol 11 (2) ◽  
pp. 64-107 ◽  
Author(s):  
Michael Geruso ◽  
Timothy Layton ◽  
Daniel Prinz
Keyword(s):  
Health Insurance ◽  
Prescription Drugs ◽  
Risk Adjustment ◽  
Contract Design ◽  
Trade Off ◽  
Insurance Contracts ◽  
Exchange Risk ◽  
Multidimensional Screening ◽  
Risk Protection ◽  
Insurance Exchanges

We study insurers’ use of prescription drug formularies to screen consumers in the ACA Health Insurance exchanges. We begin by showing that exchange risk adjustment and reinsurance succeed in neutralizing selection incentives for most, but not all, consumer types. A minority of consumers, identifiable by demand for particular classes of prescription drugs, are predictably unprofitable. We then show that contract features relating to these drugs are distorted in a manner consistent with multidimensional screening. The empirical findings support a long theoretical literature examining how insurance contracts offered in equilibrium can fail to optimally trade off risk protection and moral hazard. (JEL D82, G22, H51, I13, I18)

Rollout of health insurance exchanges is behind schedule

BMJ ◽  
2013 ◽  
Vol 346 (jun20 5) ◽  
pp. f4021-f4021
Author(s):  
M. McCarthy
Keyword(s):  
Health Insurance ◽  
Insurance Exchanges

scholarly journals Enforcing Enrollment in Health Insurance Exchanges

2015 ◽  
Vol 72 (4) ◽  
pp. 496-509 ◽  
Author(s):  
Ewout van Ginneken ◽  
Thomas Rice
Keyword(s):  
Health Insurance ◽  
Insurance Exchanges

Health Insurance Exchanges — Making the Markets Work

2009 ◽  
Vol 361 (12) ◽  
pp. 1135-1137 ◽  
Author(s):  
Richard G. Frank ◽  
Richard J. Zeckhauser
Keyword(s):  
Health Insurance ◽  
Insurance Exchanges
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