Research Conducted at Indiana University Has Provided New Information about Insurance (Multimarket Contact In Health Insurance: Evidence From Medicare Advantage): Insurance

2023 MAY 12 (NewsRx) -- By a News Reporter-Staff News Editor at Health Policy and Law Daily -- Investigators publish new report on Insurance. According to news reporting from Bloomington, Indiana, by NewsRx journalists, research stated, “Many industries consist of large firms that compete in multiple geographic markets. Such overlap, defined as multimarket contact (MMC), may facilitate tacit collusion and soften competition.”

The news correspondents obtained a quote from the research from Indiana University, “We examine the effects of MMC on health insurance prices and quality using comprehensive data on the Medicare Advantage (MA) market from 2008 through 2015. Our identification strategy exploits two plausibly exogenous changes to MMC: (1) out-of-market mergers; and (2) policy-driven changes in the benchmark rates of other markets.”

According to the news reporters, the research concluded: “Our results consistently support the mutual forbearance hypothesis, where we find that prices are significantly higher and high-quality plans less pervasive as MMC increases.”

This research has been peer-reviewed.

For more information on this research see: Multimarket Contact In Health Insurance: Evidence From Medicare Advantage. The Journal of Industrial Economics, 2023;71(1):212-255. The Journal of Industrial Economics can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA.

Our news journalists report that additional information may be obtained by contacting Haizhen Lin, Indiana University, Kelley School of Business, Business Econ & Publ Policy, 1309 E Tenth St, Bloomington, IN 47405, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/joie.12318. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

(Our reports deliver fact-based news of research and discoveries from around the world.)