Health Care Management Papers

Document Type

Journal Article

Date of this Version

12-2008

Publication Source

Journal of health economics

Volume

27

Issue

6

Start Page

1451

Last Page

1461

DOI

10.1016/j.jhealeco.2008.07.014

Abstract

This paper investigates the impact of Medicare HMO penetration on the medical care expenditures incurred by Medicare fee-for-service (FFS) enrollees. We find that increasing penetration leads to reduced spending on FFS beneficiaries. In particular, our estimates suggest that the increase in HMO penetration during our study period led to approximately a 7% decline in spending per FFS beneficiary. Similar models for various measures of health care utilization find penetration-induced reductions consistent with our spending estimates. Finally, we present evidence that suggests our estimated spending reductions are driven by beneficiaries who have at least one chronic condition.

Copyright/Permission Statement

© . This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

Managed care, medicare

Additional Files

chernew.pdf (151 kB)

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Date Posted: 27 November 2017