essays in public finance and industrial organization a dissertation ...

CHAPTER 1. BANKRUPTCY 64
Table 1.14: Summary Statistics: Premiums
N Mean Std. Dev. Min. Max.
Premium (per month) 1,891 103 46 30 503
Deductible 1,891 3,351 2,229 0 8,963
Coinsurance (%) 1,891 15 12 0 50
Notes: Plan characteristics for all plans offered to a 30-year-old non-smoking male in each state
on eHealthInsurance. Values inflation-adjusted to 2005 using the CPI-U.
Table 1.15: Costs and Premiums by Deductible Level
Deductible Pr(Costs > deductible) Calibrated
Premium
Individual Market
$0 46.0% $2,126 $2,140
$1,000 10.4% $1,735 $2,061
$2,000 5.9% $1,546 N/A
$5,000 2.7% $1,259 $874
$10,000 1.5% $1,009 N/A
Notes: Costs are medical costs when uninsured. Calibrated premiums are calculated as the
expected value of medical costs above the deductible scaled up to account for moral hazard
(elasticity of -0.22) and administrative loading (50 percent). Individual market premiums are for
policies starting in May 2010 issued by Aetna. They are adjusted for inflation using the Medical
Care component of the CPI-U. See Appendix D for details.