The majority of Medicare beneficiaries rely on supplemental
insurance to help fill the gaps in Medicare's benefit package and
to protect themselves from large, unanticipated health care
expenses. Although numerous studies have been conducted on Medicare
Supplemental insurance ownership, few attempts have been made to
explore the decision- making process for purchasing Medigap. This
book examined decision factors in the dynamics of private
supplemental insurance purchases on the conceptual framework of
Bounded Rationality. The study used Multilevel modeling to examine
the time-dependent relationship of the Medigap purchasing decision
on longitudinal data from the Asset and Health Dynamics Among the
Oldest-Old Survey (AHEAD). The study has implications for Medicare
policies that are designed to enhance health care coverage while
containing health care costs through market competition. It is also
important for public agencies and other entities helping the
disadvantaged elderly make informed enrollment decisions, and for
furthering empirical knowledge and research methodology on the
behavioral modeling with respect to health insurance purchases.
General
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