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HMO Coverage Reduces Variations In The Use Of Health Care Among Patients Under Age Sixty-Five

Year: 2010

Type: article

Abstract: Variation in the use of hospital and physician services among Medicare beneficiaries is well documented. However, less is known about the younger, commercially insured population. Using data from the Community Tracking Study to investigate this issue, we found significant variation in the use of both inpatient and outpatient services across twelve metropolitan areas. HMO insurance reduces, but does not eliminate, the extent of this variation. Our results suggest that health plan spending to better organize delivery systems and manage care may be efficient, and regulations that arbitrarily cap plans' spending on administration, such as minimum medical loss ratios, could undermine efforts to achieve better value in health care.

Source: Health Affairs

DOI: 10.1377/hlthaff.2009.0810

Authors: Laurence C. Baker, M. Kate Bundorf, Daniel P. Kessler

Institutions: National Bureau of Economic Research, Stanford Medicine, Stanford University, Hoover Institution

Language: English

Topic: Healthcare Policy and Management

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Good health and well-being

Open Access status: green

Funder: National Institute on Aging