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Health Plan Conversions: Are They in the Public Interest?
Nancy Dean Beaulieu working paper publicized by National Bureau of Economic Research 
Dec. 8, 2003
Excerpt: This paper develops a framework for evaluating health plan conversions and examines related health policy issues through the lens of a case study of the proposed conversion of the CareFirst Blue Cross Blue Shield Company. Analyses demonstrate that CareFirst wields substantial market power ... that it is unlikely to realize cost savings through expanded economies of scale, and that quality of care appears to be lower in the plans typically acquiring converting health plans.
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