Managed Care and Medical Expenditures of Medicare Beneficiaries

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

No 13747, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper investigates the impact of Medicare HMO penetration on the medical care expenditures incurred by Medicare fee-for-service enrollees. We find that increasing penetration leads to reduced health care spending on fee-for-service beneficiaries. In particular, a one percentage point increase in Medicare HMO penetration reduces such spending by .9 percent. We estimate similar models for various measures of health care utilization and 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.

JEL-codes: I11 I18 (search for similar items in EconPapers)
Date: 2008-01
New Economics Papers: this item is included in nep-hea and nep-ias
Note: EH
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Citations: View citations in EconPapers (16)

Published as Chernew, Michael & DeCicca, Philip & Town, Robert, 2008. "Managed care and medical expenditures of Medicare beneficiaries," Journal of Health Economics, Elsevier, vol. 27(6), pages 1451-1461, December.

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Journal Article: Managed care and medical expenditures of Medicare beneficiaries (2008)
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