Marquis, M. Susan.

Participation in alternative health plans : the role of financial incentives in Medicare beneficiaries' decisions / M. Susan Marquis, Jeannette A. Rogowski. - xvii, 70 pages : illustrations ; 23 cm

"RAND/UCLA/Harvard Center for Health Care Financing Policy Research."

Includes bibliographical references (67-70).

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.



0833011847

RAND/R-4105-HCFA

$25.00

92140244


Insurance, Health--United States.
Medical care--Finance.--United States
Medicare.

HD7102.U4 / M37 1991