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8/7/2000: Enrollee Mix, Treatment Intensity, and Cost in Competing Indemnity and HMO Plans (National Bureau of Economic Research Working Paper)
Link to a Working Paper available for downloading from the National Bureau of Economic Research. Excerpt: We examine why managed care plans are less expensive than traditional indemnity insurance plans. Our database consists of the insurance experiences of over 200,000 state and local employees in Massachusetts and their families, who are insured in a single pool. Within this group, average HMO costs are 40 percent below those of the indemnity plan.
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