This article examines a model of competition between two types of health insurer: Health Maintenance Organizations (HMOs) and nonintegrated insurers. HMOs vertically integrate health care providers and pay them at a competitive price, while nonintegrated health insurers work as indemnity plans...

This paper examines a model of competition between two types of health insurers: Managed Care Organizations (MCOs) and “Conventional Insurers." MCOs vertically integrate health care providers and pay them at a competitive price, while conventional insurers work as indemnity plans and pay the...