Selection experiences in Medicare HMOs: pre-enrollment expenditures
- PMID: 11482122
- PMCID: PMC4194606
Selection experiences in Medicare HMOs: pre-enrollment expenditures
Abstract
Using 1993 and 1994 data, the authors examine whether beneficiaries who enroll in a Medicare health maintenance organization (HMO), including those enrolling for only a short period of time, have lower expenditures than continuous fee-for-service (FFS) beneficiaries the year prior to enrollment. We also test whether biased selection varies by the level of HMO market penetration and the rate of market-share growth. We find favorable selection associated with enrollment into Medicare HMOs, which declines as market share increases but does not disappear. Among short-term enrollees, we find unfavorable selection, however, selection bias was not sensitive to market characteristics.
References
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- Brown RS. Biased Selection in Medicare HMOs. Paper presented at the Fifth Annual Meeting of the Association for Health Services Research; San Francisco, CA.. June 26-28, 1988.
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- Brown RS, Bergeron JW, Clement DG, et al. Does Managed Care Work for Medicare? Cambridge, MA.: Mathematica Policy Research, Inc.; 1993a. Unpublished paper.
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- Clement DG, Gleason PM, Brown RS. The Effects of HMO Market Penetration on Medicare Fee For-Service Costs. Richmond, VA.: Williamson Institute for Health Studies; Aug, 1992.
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- Cox DF, Hogan C. Biased Selection and Medicare HMOs: Analysis of the 1989-1994 Experience. Washington, DC.: Physician Payment Review Commission; Dec 23, 1996.
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