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. Author manuscript; available in PMC: 2018 Dec 1.
Published in final edited form as: J Health Econ. 2017 Dec;56:259–280. doi: 10.1016/j.jhealeco.2017.04.004

Table 3.

Choice Model Results

Parameter Estimate Parameter Std Error
Enhanced Shifter −178.22 34.87
Switching Cost - Intercept 1585.74 407.39
Switching Cost - Age Coeff 21.91 12.84
Switching Cost - Fem Coeff −359.24 258.70
CARA - Intercept 1.0* 10−3 1.7*10−4
CARA - Log expend −3.2*10−5 1.7*10−5
CARA - Age Coeff −8.4*10−6 3.9*10−6
CARA - Age*Log expend 4.2*10−7 3.5*10−7
CARA - Fem Coeff 2.3*10−5 6.4*10−5
CARA - Pros Risk Coeff −3.1*10−5 2.1*10−5
CARA - Conc Risk Coeff 2.7*10−6 1.5*10−5
Preference Shock - Std Dev 20.07 231.50
Mean CARA 6.3* 10−4
Median CARA 6.2*10−4
Mean Switching Cost 2424.70
Median Switching Cost 2418.24

Notes: Results from simulated maximum likelihood estimation of choice model described in the paper. Enhanced shifter is a plan-specific intercept for the Enhanced Plan. Switching costs are estimated by comparing the choices of switchers and those of new enrollees of similar age and gender. CARA intercept represents the coefficient of absolute risk aversion for a zero year-old with total predicted cost and risk adjustment risk scores of zero. Log expend coefficient describes how CARA parameter varies with the log of total realized costs. Pros and conc risk coefficients describe how CARA parameter varies with risk adjustment risk scores. Mean CARA parameter implies that average individual in the sample would be indifferent between the status quo and a lottery that offered $100 with 50% probability and $95 with 50% probability.