Establishing an Analytical Framework for Measuring the Role of Reinsurance in the Health Insurance Market. 2. The HMO Reinsurance Markets


The existence of HMOs has produced two separate markets for reinsurance, one for reinsurance sold to HMOs, and another for reinsurance sold to the provider groups capitated by HMOs. We refer to the former as "HMO reinsurance," and the latter as "provider excess coverage." We discuss these two markets separately.