Entry and Exit in the affordable care act market – UROP Spring Symposium 2021

Entry and Exit in the affordable care act market

Manli Zhao


Pronouns: she/her

Research Mentor(s): Weikun Yang, Ph.D.
Research Mentor School/College/Department: Strategy Department, Ross School of Business
Presentation Date: Thursday, April 22, 2021
Session: Session 4 (2pm-2:50pm)
Breakout Room: Room 18
Presenter: 5

Event Link


The affordable care act is promised to be a win-win solution for both healthcare insurance companies and individuals. Still, we saw healthcare insurance firms have been claiming that they suffer a significant loss in the market, and many of them exit the market after a short period of operation. We want to understand the rationale behind the entry and exit and generate practical implications for businesses and policy implications for the government. First of all, we want to learn about the diversification and performance of insurance firms, focusing on the change of portfolio performance before and after related/unrelated diversification. Also, we summarize and compare the advantages and disadvantages of the related and unrelated diversification Secondly, we try to investigate the influence of diversification on insurance firms, how they reach the economics of scale or economics of scale through diversification in their portfolio or business in the healthcare industry, including the cooperation with hospital and brokers.

Authors: Manli Zhao
Research Method: Qualitative Study

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