Participation in Alternative Health Plans

The Role of Financial Incentives in Medicare Beneficiaries' Decisions

by M. Susan Marquis, Jeannette Rogowski

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 3.4 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback87 pages $25.00 $20.00 20% Web Discount

Medicare beneficiaries choosing to enroll in an alternative health plan (AHP) must make a tradeoff between restricted choice of provider and financial incentives to enroll in the plan. This study examines this tradeoff empirically by estimating a model of beneficiary plan choice using survey data in which beneficiaries were asked to state a preference between several hypothetical AHPs and their current Medicare coverage. The results show that a substantial financial incentive is necessary to attract beneficiaries. For an incentive of a given amount, plans that provide financial protection against high-cost hospitalizations or long-term care are more attractive than plans that offer additional ambulatory benefits.

This report is part of the RAND Corporation report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.