and benefit package. Medicare provides a subsidy, based on a "benchmark payment rate", for each Medicare beneficiary a … plan enrolls. We investigate how this subsidy, the primary policy lever in the market, affects the equilibrium premiums and … subsidy dollars and can account for the empirical results. More specifically, institutional features make it difficult for …

government who is now an additional player in the system. We quantify how demand uncertainty impacts the various players … (government, industry and consumers) when designing policies. We further show that for convex demand functions, an increase in … demand uncertainty leads to higher production quantities and lower prices, resulting in lower profits for the supplier. With …