Enrollment in Medicare Advantage Plans in Miami-Dade County: Evidence of Status Quo Bias?

Evidence from behavioral economics reveals that decision making in health care settings can be affected by circumstances and choice architecture. This paper conducts an analysis of choice of private Medicare plans (Medicare Advantage [MA] plans) in Miami-Dade County. We provide a detailed description of the choice of MA plans available in Miami over much of the program's history. Our analysis suggests that first becoming eligible for Medicare is the key transition point for MA and that there is a significant status quo bias in the MA market. Policy that regulates the MA market should anticipate, monitor, and account for this consumer behavior.