Health Insurance Reform and HMO Penetration in the Small Group Market
We use data from several national employer surveys conducted between the late 1980s and the mid-1990s to investigate the effect of state-level underwriting reforms on HMO penetration in the small-group health insurance market. We identify reform effects by exploiting cross-state variation in the timing and content of reform legislation and by using mid-sized and large employers, which were not affected by the legislation, as within-state control groups. While it is difficult to disentangle the effect of state reforms from other factors affecting HMO penetration in the small group markets, the results suggest a positive relationship between insurance market regulations and HMO penetration.
Thomas C. Buchmueller & Su Liu, 2005. "Health Insurance Reform and HMO Penetration in the Small Group Market," INQUIRY: The Journal of Health Care Organization, Provision, and Financing, vol 42(4), pages 367-380.