Transforming Health Care Through Evidence and Collaboration
Transforming Health Care Through Evidence and Collaboration

Choice Inconsistencies Among the Elderly: Evidence from Plan Choice in the Medicare Part D Program—American Economic Review

The 18th Annual Health Care Research Award has been awarded to Jason Abaluck and Jonathan Gruber for their piece “Choice Inconsistencies Among the Elderly: Evidence from Plan Choice in the Medicare Part D Program” in American Economic Review, June 2011. The paper demonstrated that Medicare beneficiaries tend to make poor choices when they initially select a prescription drug plan in Medicare Part D—paying more for coverage and out-of-pocket expenses than they would have paid under another plan available to them. The authors estimate that welfare would have been 27 percent higher if all enrollees had chosen rationally.