Managed Care Insurance and Health Cost Inflation: An Evolutionary Game Approach

Brown, H. Shelton and Beard, Rodney (2000) Managed Care Insurance and Health Cost Inflation: An Evolutionary Game Approach. Discussion Paper No. 272, Department of Economics, The University of Queensland.

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Author Brown, H. Shelton
Beard, Rodney
Title Managed Care Insurance and Health Cost Inflation: An Evolutionary Game Approach
School, Department or Centre Department of Economics
Institution The University of Queensland
Report Number Discussion Paper No. 272
Publication date 2000-03-01
Subject 340204 Health Economics
Abstract/Summary The effect of managed care insurance contracts such as health maintenance organisations and preferred provider organisations on health costs is controversial. For some time periods and areas, there is a strong negative relationship bteewen managed care penetration in a market and health costs. Other researchers have found a positive relation between managed care penetration and health costs. Traditional fee for service premiums in a market area may decline as managed care penetration increases when managed care market share is low, only to increase as maaged care pentration increases when its market share is high. This paper seeks to provide a theoretical explanation for the various health cost/premium inflation patterns found at different levels of market share for managed care insurers.
Keyword health insurance
markets
health care
managed care
health costs
insurance contracts
fee for service
inflation
deflation

Document type: Department Technical Report
Collection: Discussion Papers (School of Economics)
 
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Created: Thu, 17 Jun 2004, 10:00:00 EST by Belinda Weaver (EA)