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Managed care and medical expenditures of Medicare beneficiaries

Michael Chernew, Philip DeCicca and Robert Town
Authors registered in the RePEc Author Service: Philip DeCicca

Journal of Health Economics, 2008, vol. 27, issue 6, 1451-1461

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.

Keywords: Managed; care; Medicare (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:27:y:2008:i:6:p:1451-1461

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