Fang, Hanming; Keane, Michael P.; Silverman, Dan - In: Journal of Political Economy 116 (2008) 2, pp. 303-350
We provide evidence of advantageous selection in the Medigap insurance market and analyze its sources. Conditional on controls for Medigap prices, those with Medigap spend, on average, $4,000 less on medical care than those without. But if we condition on health, those with Medigap spend $2,000...