Retirement and health plan choice

Many consumers exhibit choice persistence, often sticking with suboptimal or dominated health plans. We analyze the effect of retirement on health plan choice using a fuzzy regression discontinuity design that exploits Switzerland's old-age pension legislation. Drawing on insurance claims data from 84,731 individuals aged 61 to 68 over the years 2006-2014, we find that retirement significantly increases switching from the standard model to managed care plans, which offer lower premiums but restrict access to specialist care. However, deductible choices remain largely unaffected, as retirees are no more likely to select the cost-minimizing deductible than their non-retired counterparts. We conclude that while retirement may encourage plan switching, many consumers still choose dominated options, underscoring the need for a richer policy framework that provides consumer guidance incorporating measures such as personalized information interventions and simplified choice architectures to promote better health plan choices.

Authors

Institutions

Publication Details

Journal
Social Science & Medicine
Published
2025-02-20
DOI
https://doi.org/10.1016/j.socscimed.2025.117844
Primary Topic
Retirement, Disability, and Employment
Type
article
Field-Weighted Citation Impact
0.00
Controls
|||
ALL TIME
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
article

Retirement and health plan choice

Mujaheed Shaikh, Tobias Müller, Lukas Kauer
Social Science & Medicine
Retirement, Disability, and Employment
article

Retirement and health plan choice

Mujaheed Shaikh, Tobias Müller, Lukas Kauer
article en

Abstract

Many consumers exhibit choice persistence, often sticking with suboptimal or dominated health plans. We analyze the effect of retirement on health plan choice using a fuzzy regression discontinuity design that exploits Switzerland's old-age pension legislation. Drawing on insurance claims data from 84,731 individuals aged 61 to 68 over the years 2006-2014, we find that retirement significantly increases switching from the standard model to managed care plans, which offer lower premiums but restrict access to specialist care. However, deductible choices remain largely unaffected, as retirees are no more likely to select the cost-minimizing deductible than their non-retired counterparts. We conclude that while retirement may encourage plan switching, many consumers still choose dominated options, underscoring the need for a richer policy framework that provides consumer guidance incorporating measures such as personalized information interventions and simplified choice architectures to promote better health plan choices.

Social Science & MedicineVol. 370
Bern University of Applied Sciences (CH), University of Lucerne (CH), Hertie School (DE), Lucerne University of Applied Sciences and Arts (CH)
Openalex Percentile: Top 95%
Retirement, Disability, and Employment
AI Navigator

Ask Laika to Summarize, Analyze, and Connect papers live on the map.

Summarize Papers & Methodologies

Extract key findings, datasets, and comparative methods across publications.

Benchmark Rankings & Visual Analytics

Rank top research institutions, authors, funders, topics, and journals by Field-Weighted Citation Impact (FWCI) and paper volume with instant charts.

Connect Distant Disciplines

Bridge topological clusters on the map to find hidden collaborative intersections.