Stephen Dubner

Handel found that just about every health plan offered to employees included what he calls a dominated option. That's a phrase that comes from game theory. And in this case, it means an option that is objectively worse than every other option. Theoretically, firms should not offer this option and no employees should choose it. But they did choose. And they do.

Here's how Ben Handel put it later in a research paper he wrote along with Joshua Schwartstein. There is strong evidence that people do not translate readily available information into knowledge that would help them make better decisions.

Here's how Ben Handel put it later in a research paper he wrote along with Joshua Schwartstein. There is strong evidence that people do not translate readily available information into knowledge that would help them make better decisions.

Here's how Ben Handel put it later in a research paper he wrote along with Joshua Schwartstein. There is strong evidence that people do not translate readily available information into knowledge that would help them make better decisions.

I mean, my first question there would be, you're saying these are employed people getting insurance through their employer. Why are the firms offering such bad choices?

I mean, my first question there would be, you're saying these are employed people getting insurance through their employer. Why are the firms offering such bad choices?

I mean, my first question there would be, you're saying these are employed people getting insurance through their employer. Why are the firms offering such bad choices?

Exactly. But still they were doing it. The story that you're telling now about... These firms offering pretty bad plans to their employees suggest that firms have as hard a time navigating these health care insurance plans as civilians do. Is that too shorthandy or is that what this amounts to?

Exactly. But still they were doing it. The story that you're telling now about... These firms offering pretty bad plans to their employees suggest that firms have as hard a time navigating these health care insurance plans as civilians do. Is that too shorthandy or is that what this amounts to?

Exactly. But still they were doing it. The story that you're telling now about... These firms offering pretty bad plans to their employees suggest that firms have as hard a time navigating these health care insurance plans as civilians do. Is that too shorthandy or is that what this amounts to?

So is it in that case the, quote, fault of the firm or is it the, quote, fault of the health care provider who is knowingly offering a suboptimal plan with the knowledge that most people are going to have a really hard time telling good from bad?

So is it in that case the, quote, fault of the firm or is it the, quote, fault of the health care provider who is knowingly offering a suboptimal plan with the knowledge that most people are going to have a really hard time telling good from bad?

So is it in that case the, quote, fault of the firm or is it the, quote, fault of the health care provider who is knowingly offering a suboptimal plan with the knowledge that most people are going to have a really hard time telling good from bad?

Meaning the firm comes up with a subsidy that they are going to then recoup from the employees, but they may differ from plan to plan. Exactly. And you're saying they're mispricing those subsidies, it sounds like. Yes. Is this a case where the price that you're looking at and the terms that you're looking at are simply not transparent enough? Or is it miscalculations on behalf of the employer?

Meaning the firm comes up with a subsidy that they are going to then recoup from the employees, but they may differ from plan to plan. Exactly. And you're saying they're mispricing those subsidies, it sounds like. Yes. Is this a case where the price that you're looking at and the terms that you're looking at are simply not transparent enough? Or is it miscalculations on behalf of the employer?

Meaning the firm comes up with a subsidy that they are going to then recoup from the employees, but they may differ from plan to plan. Exactly. And you're saying they're mispricing those subsidies, it sounds like. Yes. Is this a case where the price that you're looking at and the terms that you're looking at are simply not transparent enough? Or is it miscalculations on behalf of the employer?

But the kind of certainty you're talking about isn't just the certainty of what you will need over the coming year. It's what the plan actually includes. Is that right?

But the kind of certainty you're talking about isn't just the certainty of what you will need over the coming year. It's what the plan actually includes. Is that right?

But the kind of certainty you're talking about isn't just the certainty of what you will need over the coming year. It's what the plan actually includes. Is that right?

The more I hear from Ben Handel, the more I believe that sludge isn't just a nuisance. It's a cancer. It's a malignancy that turns otherwise healthy tissue sick. Think about it.