Working Paper: NBER ID: w20812
Authors: Keith Marzilli Ericson; Amanda Starc
Abstract: We measure provider coverage networks for plans on the Massachusetts health insurance exchange using a two measures: consumer surplus from a hospital demand system and the fraction of population hospital admissions that would be covered by the network. The two measures are highly correlated, and show a wide range of networks available to consumers. We then estimate consumer willingness-to-pay for network breadth, which varies by age. 60-year-olds value the broadest network approximately $1200-1400/year more than the narrowest network, while 30-year-olds value it about half as much. Consumers place additional value on star hospitals, and there is significant geographic heterogeneity in the value of network breadth.
Keywords: No keywords provided
JEL Codes: I10; I11; I13; L14
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| network attributes (D85) | consumer preferences (D11) |
| network breadth (D85) | consumer valuation (D46) |
| presence of 'star' hospitals (I11) | consumer valuation (D46) |
| network breadth (D85) | willingness to pay (D11) |
| age (J14) | consumer valuation (D46) |
| consumer choices (D10) | fraction of hospital admissions covered by the network (I11) |