Measuring Consumer Valuation of Limited Provider Networks

S-Tier
Journal: American Economic Review
Year: 2015
Volume: 105
Issue: 5
Pages: 115-19

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We measure the breadth of insurance networks in the Massachusetts health insurance exchange. Using our measures, we estimate consumer willingness-to-pay for broad and narrow networks. We find that consumers have a wide range of plans available with dramatically different networks. While consumers value broader networks, their willingness-to-pay is smaller than the brand premium, indicating an additional role for brand preferences. Consumers place additional value on star hospitals, which may affect upstream negotiations. Finally, we find significant geographic heterogeneity in the value of broad networks.

Technical Details

RePEc Handle
repec:aea:aecrev:v:105:y:2015:i:5:p:115-19
Journal Field
General
Author Count
2
Added to Database
2026-01-25