Medigap Insurance Market Shows $4,000 Savings for Policyholders.
Advantageous selection was found in the Medigap insurance market. People with Medigap spend less on medical care overall, but more if they are in poor health. Factors like income, education, and cognitive ability influence who buys Medigap. Those expecting higher medical costs are more likely to get Medigap. Risk preferences don't play a big role, but cognitive ability does.