Risk Adjustment of Health Plan Payments to Correct Inefficient Plan Choice from Adverse Selection

Jacob Glazer, Thomas McGuire, Julie Shi

NBER Working Paper No. 19998
Issued in March 2014

---- Acknowledgments ----

Research for this paper was supported by the National Institute of Mental Health (R01 MH094290) and the National Institute of Aging (P01-AG032952). This paper is prepared for presentation at the NBER Conference, "Measuring and Modeling Health Care Costs," October 18-19, 2013 in Washington DC. We are grateful to Randy Ellis, Amy Finkelstein, Jonathan Kolstad, Tim Layton, Karen Stockley, Aaron Schwartz and a referee for comments on a previous version. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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