TY  - JOUR
AU  - Abraham,Jean
AU  - Arora,Ashish
AU  - Gaynor,Martin
AU  - Wholey,Douglas
TI  - Enter at Your Own Risk: HMO Participation and Enrollment in the MedicareRisk Market
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 7385
PY  - 1999
Y2  - October 1999
UR  - http://www.nber.org/papers/w7385
L1  - http://www.nber.org/papers/w7385.pdf
N1  - Author contact info:
Jean Abraham
Department of Health Policy and Management
University of Minnesota
20 Delaware St SE
MMC 729
Minneapolis, MN 55455
E-Mail: abrah042@umn.edu

Ashish Arora
Fuqua School of Business
Duke University
Box 90120
Durham, NC 27708-0120
Tel: 919 660 7746
Fax: 919 684-2818
E-Mail: ashish.arora@duke.edu

Martin Gaynor
Heinz College
Carnegie Mellon University
4800 Forbes Avenue,,Room 3008
Pittsburgh, PA 15213-3890
Tel: 412/268-7933
Fax: 412/268-5338
E-Mail: mgaynor@cmu.edu

Douglas Wholey
Health Services Research and Policy
School of Public Health
University of Minnesota
Mayo Mail Code 729,
420 Delaware Street  S.E.
Minneapolis, MN 55455-0392
E-Mail: whole001@umn.edu
AB  - We examine HMO participation and enrollment in the Medicare risk market for the years 1990 to 1995.  We develop a profit- maximization model of HMO behavior, which explicitly considers potential linkages between an HMO's production decision in the commercial enrollee market and its participation and production decisions in the Medicare risk market.  Our results suggest that the payment rate is a primary determinant of HMO participation, while the price of a supplemental Medicare insurance policy positively affects HMO Medicare enrollment.  We also find empirical support for the existence of complementarities in the joint production of an HMO's commercial and Medicare products.
ER  -