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CHAPTER 2. HEALTH PLAN CHOICE 114
100 200 300 400 500 600 Bids .5 .51 1.5 22E[Risk
Score|Age,Male]
E[Risk Score|Age,Male]
Network HMO
Network HMO
Network PPO
Network PPO
Intergrated HMO
Intergrated HMO
Integrated POS
Integrated POS
100
600
500
Bids
400
300
200
100
.5
Network HMO
Intergrated HMO
Figure 2.6: Bids by Risk Score
Network PPO
Integrated POS
1
1.5
E[Risk Score|Age,Male]
Notes: Each point represents a plan-employer-year. E[Risk—Age, Male] is the average
predicted risk score of potential enrollees in a firm-year. Bids is the per-month bid. Fitted
lines represent the Network HMO and Integrated HMO.
2