Enter at Your Own Risk: HMO Participation and Enrollment in the MedicareRisk Market
AbstractWe examine HMO participation and enrollment in the Medicare risk market for the years 1990 to 1995. We develop a profit- maximization model of HMO behavior, which explicitly considers potential linkages between an HMO's production decision in the commercial enrollee market and its participation and production decisions in the Medicare risk market. Our results suggest that the payment rate is a primary determinant of HMO participation, while the price of a supplemental Medicare insurance policy positively affects HMO Medicare enrollment. We also find empirical support for the existence of complementarities in the joint production of an HMO's commercial and Medicare products.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7385.
Date of creation: Oct 1999
Date of revision:
Publication status: published as Abraham, Jean, Ashish Arora, Martin Gaynor and Douglas Wholey. "Enter At Your Own Risk: HMO Participation And Enrollment In The Medicare Risk Market," Economic Inquiry, 2000, v38(3,Jul), 385-401.
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Find related papers by JEL classification:
- I1 - Health, Education, and Welfare - - Health
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
This paper has been announced in the following NEP Reports:
- NEP-ALL-1999-11-08 (All new papers)
- NEP-HEA-1999-11-08 (Health Economics)
- NEP-IAS-1999-11-08 (Insurance Economics)
- NEP-PBE-1999-11-08 (Public Economics)
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