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X-WR-CALDESC:Events for CREST
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DTSTART:20190331T010000
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DTSTART:20191027T010000
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DTSTART;TZID=Europe/Helsinki:20190517T001500
DTEND;TZID=Europe/Helsinki:20190517T133000
DTSTAMP:20260713T082941
CREATED:20190319T125414Z
LAST-MODIFIED:20190319T125414Z
UID:12240-1558052100-1558099800@crest.science
SUMMARY:Gautam Gowrisankaran  (Arizona) - "Reclassification Risk in the Small Group Health Insurance Market"
DESCRIPTION:CREST Microeconomics Seminar :  \n\nTime: 12:15 pm – 1:30pm\nDate: 17th May 2019\nPlace: Room 3001.\nGautam Gowrisankaran (Arizona) – “Reclassification Risk in the Small Group Health Insurance Market” \nAbstract: \nWe evaluate reclassification risk in the small group health insurance market from\na period before ACA community rating regulations. Using detailed individual-level\ndata from a large insurer\, we find a pass through of 16% from health risk to premiums\nwith enrollee fixed effects\, and 70% without fixed effects. The fixed effects estimates\nidentify the extent to which the insurer passes through changes in risk to changes in\npremiums while the higher estimates without fixed effects may be due to more risk\nrating for new accounts. Our estimates control for selection into insurance take-up\nwith a non-parametric selection model\, using individual risk and industrial sector as\nexclusion restrictions. Our results are also robust to other possibilities\, including potential measurement error of risk scores and slow pass through over time. We seek\nto explain why our fixed effects estimates are much closer to community rating than\nfull experience rating. The limited pass through may be due to implicit “guaranteed\nrenewability” contracts with one-sided pricing commitment on the part of the insurer\,\nas our results are broadly consistent with the equilibrium pass through that would\noccur under these contracts. Our results cannot be explained by market power\, search\nfrictions\, or slow pass through over time. We simulate the value that is generated by\nthe insurer’s pricing policy relative to counterfactual pricing policies. The insurer’s\npolicy generates 60% of the welfare gain from community rating relative to full experience rating. Even community rated plans generate substantial reclassification risk\ndue to high out-of-pocket costs. \n\n\nOrganizers:\nRoxana Fernandez Machado (CREST)\, Marie Laure Allain (CREST)\, and Linda Schilling (CREST)\nSponsors:\nCREST\nLunch registration:\nfood provided\, no registration needed\n\n  \n
URL:https://crest.science/event/gautam-gowrisankaran-arizona-tba/
LOCATION:3001
CATEGORIES:Microeconomics
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