The administrative costs of non-profit health insurers |
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| Authors: | Kass D I Pautler P A |
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| Affiliation: | *The authors are staff economists with the Federal Trade Commission. The views expressed in this paper are those of the authors and are not intended to be, nor should they be construed as, representative of the views of any other member of the Federal Trade Commission staff or individual Commissioners. We would like to thank John Peterman, Ronald Vogel, Paul Ginsburg, and an anonymous referee for their comments. |
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| Abstract: | Interest in the efficiency or inefficiency of non-profit firms has spawned research on the administrative costs of Blue Cross and Blue Shield plans. Relying on plausible implications of the property rights theory of the firm, both Blair, Ginsburg, and Vogel (1975) and Vogel (1977) noted some evidence of inefficiency in these firms. Our analysis, however, utilizing their models and more recent data, reveals little convincing evidence for the view that Blue Shield plans are inefficient. |
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