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Defined Benefit Calculation Specialist/Actuary The Angell Pension Group, Inc.
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| Should There Be Vertical Choice in Health Insurance Markets? National Bureau of Economic Research [NBER]; purchase required for full document  May 10, 2021 "When premiums cannot reflect individual costs, consumers may not select their efficient coverage level. We show that vertical choice is efficient only if consumers with higher willingness to pay for insurance have a higher efficient level of coverage. Using administrative data from a large public employer, we investigate this condition empirically and find that the welfare gains from vertical choice are either zero or economically small." |
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