Does It Matter if Your Health Insurer Is For Profit? Effects of Ownership on Premiums, Insurance Coverage, and Medical Spending

Leemore Dafny

American Economic Journal: Economic Policy, 2019, vol. 11, issue 1, 222-65

Abstract: There is limited empirical evidence about the impact of for-profit health insurers on various outcomes. I study the effects of conversions to for-profit status by Blue Cross and Blue Shield (BCBS) affiliates in 11 states, spanning 28 geographic markets. I find both the BCBS affiliate and its rivals increased premiums following conversions in markets where the converting affiliate had substantial market share. Medicaid enrollment rates also increased in these markets, a pattern consistent with "crowd in" of families who were formerly privately insured. The results suggest for-profit insurers are likelier than not-for-profit insurers to exercise market power when they possess it.

JEL-codes: G22 I13 I18 I38 (search for similar items in EconPapers)
Date: 2019
Note: DOI: 10.1257/pol.20130370
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Citations: View citations in EconPapers (5)

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