Enter at your own risk: HMO participation and enrollment in the Medicare risk market

Published

Journal Article

We 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.

Full Text

Duke Authors

Cited Authors

  • Abraham, J; Arora, A; Gaynor, M; Wholey, D

Published Date

  • January 1, 2000

Published In

Volume / Issue

  • 38 / 3

Start / End Page

  • 385 - 401

International Standard Serial Number (ISSN)

  • 0095-2583

Digital Object Identifier (DOI)

  • 10.1111/j.1465-7295.2000.tb00025.x

Citation Source

  • Scopus