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Would an HMO entering the Medicare market expect to experience favorable or adverse selection? Would the magnitude of the selection bias be larger or smaller for an HMO entering the commercial employee benefit market? The Medicaid market? "What incentives does a capitated physician have to keep his patients happy? What incentive does an FFS physician have? If Mr. Jones is a cranky old man who smokes and drinks so much that his liver and other organs are going downhill, which payment system provides more incentive to keep Mr. Jones satisfied? Which provides the most incentive to render extra care? Which provides the most incentive to make sure that the level of care is optimized?" Price: $0.00
An HMO is an organization that has the legal mandate of providing comprehensive health services to Medical beneficiaries for a monthly.
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