Participation and Satisfaction in Employer Plans with Preferred Provider Organization Options

by Susan D. Hosek, M. Susan Marquis

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 2.5 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback72 pages $25.00 $20.00 20% Web Discount

Preferred provider organizations (PPOs) are growing rapidly in number and enrollment as an alternative to health maintenance organizations (HMOs) and traditional indemnity plans. Through their selective contracting and patient channeling mechanisms, PPOs may become an important competitive force in the health market. Their competitive impact will depend on whether they are successful in channeling a representative cross-section of patients to selected providers. Using data from five employers who offer their employees PPOs, this report investigates (1) levels of employee participation in the PPO option; (2) selection effects in the choice of health maintenance organization (HMO) vs. indemnity plans and, among those covered by an indemnity plan PPO vs. non-PPO options; and (3) satisfaction for PPO vs. non-PPO and HMO participants. The results suggest that PPOs can achieve significant patient channeling without experiencing strong adverse or favorable selection. If they can also contain costs, they should continue to grow and affect competition among health care providers.

This report is part of the RAND Corporation report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.