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Can Health Insurance Competition Work? Evidence from Medicare Advantage
National Bureau of Economic Research [NBER]Link to more items from this source
Jan. 5, 2015
"[The authors] estimate the economic surplus created by Medicare Advantage under its reformed competitive bidding rules.... [They] find that private plans have costs around 12% below fee-for-service costs, and generate around $50 dollars in surplus on average per enrollee-month, after accounting for the disutility due to enrollees having more limited choice of providers. Taxpayers provide a large additional subsidy, and insurers capture most of the private gains."

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