What Difference Does a Health Plan Make? Evidence from Random Plan Assignment in Medicaid /
Exploiting the random assignment of Medicaid beneficiaries to managed care plans, we find substantial plan-specific spending effects despite plans having identical cost sharing. Enrollment in the lowest-spending plan generates 30% lower spending--driven by differences in quantity--relative to enroll...
Gespeichert in:
- 1. Verfasser:
- Körperschaft:
- Weitere Verfasser:
- ,
- Format:
- Elektronisch E-Book
- Sprache:
- Englisch
- Veröffentlicht:
-
Cambridge, Mass.
National Bureau of Economic Research
2020.
- Zusammenfassung:
-
Exploiting the random assignment of Medicaid beneficiaries to managed care plans, we find substantial plan-specific spending effects despite plans having identical cost sharing. Enrollment in the lowest-spending plan generates 30% lower spending--driven by differences in quantity--relative to enrollment in the highest-spending plan. Rather than reducing "wasteful" spending, lower-spending plans broadly reduce medical service provision--including the provision of low-cost, high-value care--and worsen beneficiary satisfaction and health. Consumer demand follows spending: a 10 percent increase in plan-specific spending is associated with a 40 percent increase in market share. These facts have implications for the government's contracting problem and program cost growth.
- Umfang:
- 1 online resource: illustrations (black and white);
- Anmerkungen:
- August 2020.
- Schlagworte: