Capitation payment models have been increasingly adopted by the payers in the U.S. healthcare market during the past decade. However, healthcare services provided in Medicare Advantage (MA), the largest capitation program in the U.S., have been suggested to be more appealing to healthier...

Early empirical evidence indicates that Medicare Advantage (MA), the largest capitation payment program in the U.S. healthcare market, unintentionally incentivizes health plans to cherry pick profitable patient types, which is referred to as "risk selection". Motivated by this observation, we...