Nudge

“If consumers are up to this task, then their choices will ensure that the plans, and insurers, that succeed in the market are ones that meet their needs,” writes the Nobel Prize winner Daniel McFadden, a University of California–Berkeley economist who has studied Part D extensively. “However, if many are confused or confounded, the market will not get the signals it needs to work satisfactorily.”3 With so many complex plans to choose from, it should not be a huge surprise that seniors have had a difficult time sending the right signals.