Impact of Medicare Advantage Supplemental Benefit Expansion on Startup Funding

dc.contributor.advisor

Bundorf, Kate

dc.contributor.advisor

Ridley, David

dc.contributor.advisor

Connolly, Michelle

dc.contributor.author

Zhong, Judy

dc.date.accessioned

2023-09-19T15:37:56Z

dc.date.available

2023-09-19T15:37:56Z

dc.date.issued

2023-08-05

dc.department

Economics

dc.description.abstract

In 2018, the Center for Medicare and Medicaid Services (CMS) announced that they would expand the supplemental benefits that can be included in Medicare Advantage (MA) plans. The goal was to encourage insurers to innovate and test new benefit offerings that could improve health outcomes and reduce healthcare spending. A key player in this transformation is the MA vendor that provides supplemental benefit offerings to insurance plans, but this market is rather underdeveloped. To assess the implementation of this supplemental benefit expansion, this study examines the flow of funding into the emerging market of MA vendors. This paper uses a longitudinal approach and Crunchbase data on funding for 79,004 firms from 2014 to 2018 to determine whether there is a significant jump in funding toward MA vendors with supplemental benefit services following the policy change. The results show that both the average amount of funding per deal and the number of deals a MA vendor firm receives significantly increased following the expansion when compared with all other firms. This suggests that the policy may have been successful in promoting the development of the MA vendors market and the innovation of benefit offerings as more funding goes towards these companies.

dc.identifier.uri

https://hdl.handle.net/10161/29012

dc.language.iso

en

dc.subject

Innovation

dc.subject

Health insurance

dc.subject

Startup funding

dc.title

Impact of Medicare Advantage Supplemental Benefit Expansion on Startup Funding

dc.type

Honors thesis

Files

Original bundle

Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
Zhong2023.pdf
Size:
314.14 KB
Format:
Adobe Portable Document Format
Description: