Insurance considered as brokerage is very different from insurance considered as holding funds. The scale economies which are ubiquitous in the funds model dissipate when insurance is considered as intermediation. There appear to be no barriers to competition, for the potential entrant has no...

This article examines the impact of reimbursement on admissions by nursing homes. Low rates of payment for Medicaid patients suggest that nursing homes should prefer non-Medicaid patients. Such preferences are observable in daily admissions data from some of a sample of 18 Southern California...