Competitive Procurement in Health Insurance Market – Evidence from Medicaid Managed Care

Funded Research Proposal

Competitive procurement is commonly used when government contracts with private firms to provide public services, such as road and bridge construction. However, competitive procurement in health insurance marketing is rarely studied. The nature of the selection market makes the impact of competitive procurement ambiguous ex-ante because the value of winning the bid is determined by downstream competition with self-selection consumers. This project will study the welfare impact of competitive procurement in the selection market in the context of the Medicaid Managed Care market.Read More

Managing Behavioral Hazard in Practice: Value-Based Health Insurance

Funded Research Proposal

Value-based health insurance plans have been introduced as an innovative policy to improve health as well as manage health care expenditures – generally through promoting high-value care and reducing low-value care. Standard theory would suggest that the more elastic the demand is for a particular medical service, cost-sharing should be set higher to curb overconsumption due to moral hazard.Read More