In our Hamilton Project paper, Nicholas Bagley, Amitabh Chandra, and I explain why a health insurance market in which plans compete on cost effectiveness won’t work. (Click through, download the PDF, and read Box 2 on page 9, titled “Why Health Plans Cannot Differentiate on Coverage.”) The recent NBER paper by Mark Shepard makes the … Continue reading Risk adjustment cannot solve all selection issues—network contracting edition