Glazer, Jacob; McGuire, Thomas G. - In: Journal of Health Economics 32 (2013) 2, pp. 463-473
This paper studies the role of Medicare's premium policy in sorting beneficiaries between traditional Medicare (TM) and managed care plans in the Medicare advantage (MA) program. Beneficiaries vary in their demand for care. TM fully accommodates demand but creates a moral hazard inefficiency. MA...