Effect of mergers on health maintenance organization premiums.
Date of Pub
Christianson, Jon B; Wholey, Gouglas
This study estimated the effect of mergers on health maintenance organization (HMO) premiums, using data on all operational
non-Medicaid HMOs in the United States from 1985 to 1993. Two critical issues were examined: whether HMO mergers increase
or decrease premiums; and whether the effects of mergers differ according to the degree of competition among HMOs in local
markets. The only significant merger effect was found in the most competitive markets, where premiums increased, but only
for 1 year after the merger. Our research does not support the argument that consolidation of HMOs in local markets will benefit
consumers through lower premiums.
Capitation Fee : Economic Competition : Evaluation Studies : Health Facility Merger/economics : Health Maintenance Organizations/economics
: Health Services Research : Independent Practice Associations : Models, Economic : Regression Analysis : Support, Non-U.S.
Gov't : United States