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Study Finds No Evidence of Consumers Learning to Price Shop After 2 Years in High-deductible Coverage

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Findings from a study, published in The Quarterly Journal of Economics, showed no evidence of consumers learning to price shop after two years in high-deductible coverage. The researchers studied how consumers respond to the complex structure of the high-deductible contract. They found consumers respond heavily to spot prices at the time of care, reducing their spending by 42% when under the deductible, conditional on their true expected end-of-year price and their prior year end-of-year marginal price. There is no evidence of learning to respond to the true shadow price in the second year post-switch.

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