Detecting Potential Overbilling in Medicare Reimbursement via Hours Worked: Reply

Hanming Fang and Qing Gong

American Economic Review, 2020, vol. 110, issue 12, 4004-10

Abstract: Matsumoto (2020) pointed out data and coding errors in Fang and Gong (2017). We show that these errors have limited impacts: all qualitative findings remain after correcting them. Matsumoto also discussed potential service overcounting in the aggregated utilization data we used to illustrate our method, and then quantified the extent of overcounting with a sample of Medicare claims. We acknowledge the issue but discuss the noise and the bias in his quantification. Overall, our proposed method remains useful, as regulators who are interested in applying the method are unlikely to be subject to the data limitations.

JEL-codes: H51 I13 I18 J22 J44 (search for similar items in EconPapers)
Date: 2020
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DOI: 10.1257/aer.20191970

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