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Competition between non-profit and for-profit health insurers.

Publication ,  Journal Article
Adamache, KW; Sloan, FA
Published in: Journal of health economics
December 1983

This study investigates the effects of tax, regulatory, and reimbursement policies and other factors exogenous to the health insurance market on the relative price (to commercial insurers) paid by Blue Cross plans for hospital care, their administrative expense and accounting profits, premiums, and ultimately Blue Cross market share. We specify and estimate a simultaneous equation model to assess interrelationships among these variables. We conclude that premium tax advantages enjoyed by the Blues have virtually no effect on the Blues' premiums or their market shares. A Blue Cross plans' market share has a positive effect on the discount it obtains from hospitals as does coverage of Blue Shield charges by a state-mandated rate-setting plan. An upper bound on the effect on the Blue Cross market share of covering Blue Cross under rate-setting but excluding the commercials from such coverage is seven percentage points. Tests for administrative slack in the operation of Blue Cross plans yield mixed results.

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Published In

Journal of health economics

DOI

EISSN

1879-1646

ISSN

0167-6296

Publication Date

December 1983

Volume

2

Issue

3

Start / End Page

225 / 243

Related Subject Headings

  • United States
  • Taxes
  • Regression Analysis
  • Rate Setting and Review
  • Insurance, Hospitalization
  • Insurance Carriers
  • Health Policy & Services
  • Economic Competition
  • Blue Cross Blue Shield Insurance Plans
  • 4407 Policy and administration
 

Citation

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Adamache, K. W., & Sloan, F. A. (1983). Competition between non-profit and for-profit health insurers. Journal of Health Economics, 2(3), 225–243. https://doi.org/10.1016/s0167-6296(83)80003-4
Adamache, K. W., and F. A. Sloan. “Competition between non-profit and for-profit health insurers.Journal of Health Economics 2, no. 3 (December 1983): 225–43. https://doi.org/10.1016/s0167-6296(83)80003-4.
Adamache KW, Sloan FA. Competition between non-profit and for-profit health insurers. Journal of health economics. 1983 Dec;2(3):225–43.
Adamache, K. W., and F. A. Sloan. “Competition between non-profit and for-profit health insurers.Journal of Health Economics, vol. 2, no. 3, Dec. 1983, pp. 225–43. Epmc, doi:10.1016/s0167-6296(83)80003-4.
Adamache KW, Sloan FA. Competition between non-profit and for-profit health insurers. Journal of health economics. 1983 Dec;2(3):225–243.
Journal cover image

Published In

Journal of health economics

DOI

EISSN

1879-1646

ISSN

0167-6296

Publication Date

December 1983

Volume

2

Issue

3

Start / End Page

225 / 243

Related Subject Headings

  • United States
  • Taxes
  • Regression Analysis
  • Rate Setting and Review
  • Insurance, Hospitalization
  • Insurance Carriers
  • Health Policy & Services
  • Economic Competition
  • Blue Cross Blue Shield Insurance Plans
  • 4407 Policy and administration