Bhattacharya, Jay; Curto, Vilsa; Einav, Liran; Levin, … - Stanford Institute for Economic Policy Research … - 2014
We estimate the economic surplus created by Medicare Advantage under its reformed competitive bidding rules. We use data on the universe of Medicare beneficiaries, and develop a model of plan bidding that accounts for both market power and risk selection. We find that private plans have costs...