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Health Affairs, Vol 16, Issue 1, 9-33
Copyright © 1997 by Project HOPE
Insolvency Risk In Health Carriers: Innovation, Competition, And Public Protection
John L. Akula
This paper reviews the framework of regulatory and managerial devices that have evolved in response to the special dangers to the public possed by insolvency of health carriers. These devices include "prudential" measures designed to decrease the likelihood of insolvency occurs nevertheless. It also reviews the current debate over how this framework should be adapted to new forms of risk-bearing entities, especially provider-sponsored networks engaged in direct contracting with purchasers of coverage. Parallels to solvency concerns in the banking industry are explored.

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