Multistate Health Plans: Agents for Competition or Consolidation?

Inquiry : a Journal of Medical Care Organization, Provision and Financing
Robert E Moffit, Neil R Meredith

Abstract

We discuss and evaluate the Multi-State Plan (MSP) Program, a provision of the Affordable Care Act that has not been the subject of much debate as yet. The MSP Program provides the Office of Personnel Management with new authority to negotiate and implement multistate insurance plans on all health insurance exchanges within the United States. We raise the concern that the MSP Program may lead to further consolidation of the health insurance industry despite the program's stated goal of increasing competition by means of health insurance exchanges. The MSP Program arguably gives a competitive advantage to large insurers, which already dominate health insurance markets. We also contend that the MSP Program's failure to produce increased competition may motivate a new effort for a public health insurance option.

References

Oct 29, 2010·The New England Journal of Medicine·Sara Rosenbaum
Sep 1, 2010·The American Economic Review·Leemore S Dafny

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Citations

Apr 28, 2017·International Journal of Health Economics and Management·Jean Marie AbrahamKosali Simon

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