Abstract：
:More than a quarter of Medicare beneficiaries are enrolled in Medicare Advantage, which was created in large part to improve the efficiency of health care delivery by promoting competition among private managed care plans. This paper explores the spillover effects of the Medicare Advantage program on the traditional Medicare program and other patients, taking advantage of changes in Medicare Advantage payment policy to isolate exogenous increases in Medicare Advantage enrollment and trace out the effects of greater managed care penetration on hospital utilization and spending throughout the health care system. We find that when more seniors enroll in Medicare managed care, hospital costs decline for all seniors and for commercially insured younger populations. Greater managed care penetration is not associated with fewer hospitalizations, but is associated with lower costs and shorter stays per hospitalization. These spillovers are substantial - offsetting more than 10% of increased payments to Medicare Advantage plans.
journal_name
J Health Econjournal_title
Journal of health economicsauthors
Baicker K,Chernew ME,Robbins JAdoi
10.1016/j.jhealeco.2013.09.005subject
Has Abstractpub_date
2013-12-01 00:00:00pages
1289-300issue
6eissn
0167-6296issn
1879-1646pii
S0167-6296(13)00112-4journal_volume
32pub_type
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