Abstract

http://ssrn.com/abstract=1963272
 
 

References (84)



 


 



The Effects of Market Structure and Payment Rates on Private Medicare Health Plan Entry


Austin Frakt


Government of the United States of America - Department of Veterans Affairs (VA); Boston University - School of Medicine; Boston University - School of Public Health

Steven D. Pizer


Boston University - School of Public Health; Department of Veterans Affairs (VA)

Roger Feldman


University of Minnesota - Twin Cities - Department of Economics

November 22, 2011

Inquiry, Spring 2012, Vol. 49, No. 1, pp. 15-36

Abstract:     
Private insurance firms participating in Medicare can offer up to three principal plan types: coordinated care plans (CCPs), prescription drug plans (PDPs), and private fee for service (PFFS) plans. Firms can make entry and marketing decisions separately across plan types and geographic regions. We estimate firm-level models of Medicare private-plan entry using data from 2007-2009. Our models include a measure of market structure and separately identify CCP, PDP, and PFFS entry. We find evidence that entry barriers associated with CCP market concentration affect all three product types. We also find evidence of cross-product competition and common cost or demand factors that make entry with certain product combinations more likely. We predict that market presence of CCPs and PFFS plans will decrease and that of PDPs will increase in response to payment reductions included in the new health reform law.

Number of Pages in PDF File: 38

Keywords: Medicare, market structure, entry

JEL Classification: C2, D4, I11, L2

Accepted Paper Series





Download This Paper

Date posted: November 23, 2011 ; Last revised: July 18, 2012

Suggested Citation

Frakt, Austin and Pizer, Steven D. and Feldman, Roger, The Effects of Market Structure and Payment Rates on Private Medicare Health Plan Entry (November 22, 2011). Inquiry, Spring 2012, Vol. 49, No. 1, pp. 15-36. Available at SSRN: http://ssrn.com/abstract=1963272

Contact Information

Austin Frakt (Contact Author)
Government of the United States of America - Department of Veterans Affairs (VA)
150 S. Huntington Ave (152H)
Boston, MA 02130
United States
Boston University - School of Medicine ( email )
Boston, MA 02118
United States
Boston University - School of Public Health ( email )
150 S. Huntington Ave (152H)
Boston, MA 02130
United States
Steven D. Pizer
Boston University - School of Public Health ( email )
150 S. Huntington Ave.
Mail Stop 152H
Boston, MA 02130
United States
857-364-6061 (Phone)
857-364-4511 (Fax)
HOME PAGE: http://www.hcfe.research.va.gov
Department of Veterans Affairs (VA)
810 Vermont Avenue NW
Washington, DC 20420
United States
Roger Feldman
University of Minnesota - Twin Cities - Department of Economics ( email )
271 19th Avenue South
15-205 Phillips-Wangensteen
Minneapolis, MN 55455
United States
612-624-5669 (Phone)
Feedback to SSRN


Paper statistics
Abstract Views: 1,546
Downloads: 155
Download Rank: 113,076
References:  84

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.343 seconds