Showing papers in "Inquiry : a journal of medical care organization, provision and financing in 1999"

Costs of medical injuries in Utah and Colorado

Abstract: Patient injuries are thought to have a substantial financial impact on the health care system, but recent studies have been limited to estimating the costs of adverse drug events in teaching hospitals. This analysis estimated the costs of all types of patient injuries from a representative sample of hospitals in Utah and Colorado. We detected 459 adverse events (of which 265 were preventable) by reviewing the medical records of 14,732 randomly selected 1992 discharges from 28 hospitals. The total costs (all results are discounted 1996 dollars) were $661,889,000 for adverse events, and $308,382,000 for preventable adverse events. Health care costs totaled $348,081,000 for all adverse events and $159,245,000 for the preventable adverse events. Fifty-seven percent of the adverse event health care costs, and 46% of the preventable adverse event costs were attributed to outpatient medical care. Surgical complications, adverse drug events, and delayed or incorrect diagnoses and therapies were the most expensive types of adverse events. The costs of adverse events were similar to the national costs of caring for people with HIV/AIDS, and totaled 4.8% of per capita health care expenditures in these states.

The design of Healthcare for Communities: a study of health care delivery for alcohol, drug abuse, and mental health conditions.

Abstract: There is a shortage of data to inform policy debates about the quickly changing health care system. This paper describes Healthcare for Communities (HCC), a component of the Robert Wood Johnson Foundation's Health Tracking Initiative that was designed to fill this gap for alcohol, drug abuse, and mental health care. HCC bridges clinical perspectives and economic/policy research approaches, links data at market, service delivery, and individual levels, and features a household survey of nearly 9,600 individuals with an employer follow-back survey. Public use files will be available in late 1999.

Health insurance, the quantity and quality of prenatal care, and infant health.

Abstract: This paper presents a comprehensive analysis of the relationship between Medicaid, infant health, and the quantity and quality of prenatal care using data from the 1988 National Maternal and Infant Health Survey (NMIHS). This integrated approach provides a more complete picture of the effect of Medicaid and its avenues of influence, and is less likely to lead to spurious findings. The results indicate that there was no statistically significant relationship between insurance status and birth weight holding constant other observed characteristics, although there was some evidence that uninsured women and Medicaid recipients received less prenatal care than did privately insured women. Differences in prenatal care utilization, however, were small. In addition, there was no evidence that uninsured women or Medicaid recipients received lower-quality prenatal care than privately insured women did even in a period prior to implementation of state programs aimed at ensuring high-quality care. The results of this paper raise questions about the efficacy of the current public health response to poor infant health that relies on expanding insurance coverage and enriched prenatal care programs.

An alternative approach to measuring the effects of insurance market reforms.

Abstract: This paper explores the effects of small group and individual insurance market reforms on health insurance coverage using data from the 1989 through 1995 Current Population Survey. Instead of examining the effects of each of the various types of reforms, we reflect how reforms were generally implemented and measure the effects of packages of reforms. We find that small group reforms did little to affect coverage, but that individual market reforms reduced private coverage and increased uninsurance rates. However, our findings suggest that small group reforms may have prevented the erosion of private coverage during the early 1990s. (Inquiry 1999 Spring; 36(1):44-56)

Small group reform and insurance provision by small firms, 1989-1995.

Abstract: Since 1989, states have enacted legislation to dismantle barriers facing small businesses that wish to purchase health insurance. Using data on the insurance offerings of 2,472 small firms (one to 49 employees) observed from 1989 to 1995, we assess whether state reforms encouraged more small firms to sponsor health benefits. We find that small group reforms did not spur uninsured firms to offer insurance. Firms without health insurance say that the high price of coverage is still the major barrier they face to offering a plan. Our findings suggest that the small group reforms within the 1996 Health Insurance Portability and Accountability Act are not likely to have an effect on the small group market. Most states already had implemented measures similar to those found in the act, and not much changed.

Effects of Changing Medicaid Fees on Physician Participation and Enrollee Access

Abstract: This paper assesses the effects of Medicaid fee changes on physician participation, enrollee access, and shifts in the site of ambulatory care using several natural experiments in Maine and Michigan. We use Medicaid claims and enrollment data to measure these outcomes. The reimbursement changes included substantial percentage changes in fees, however the value of the Medicaid fee improvements relative to the private market eroded very rapidly in the months following the interventions. Although the fee increases did not improve the outcome measures, they might have prevented conditions from worsening.

Episodes of mental health and substance abuse treatment under a managed behavioral health care carve-out.

Abstract: Little is known about the effect of a managed behavioral health care (MBHC) carve-out on treatment episodes for a mental health/substance abuse (MHSA) condition. This study found adoption of a carve-out for Massachusetts state employees associated with a dramatic drop in total MHSA costs per episode (particularly for individuals with certain severe MHSA conditions). The carve-out also was associated with a shift away from the use of facility care toward the use of outpatient care for enrollees with a diagnosis of unipolar depression.

Do HMOs make a difference? Use of health services.

Abstract: This study analyzes the effects of health maintenance organizations (HMOs) on the use of health services by the privately insured, nonelderly population. After controlling for population and location differences, HMOs increase physician visits, nonphysician practitioner visits, and total ambulatory visits by modest but significant margins, while shifting the mix of physician care from specialists to primary care physicians. HMOs also increase use of two preventive services: mammography screening and flu shots. Contrary to expectation, however, the study finds no significant differences between HMO and non-HMO enrollees in the use of hospital, surgery, and emergency room services.

The effect of a closed formulary on prescription drug use and costs.

Abstract: This study examines the effect of a closed formulary on pharmaceutical use and spending. We compared an employer plan that implemented a closed formulary in July 1997 to a control group with an open formulary, for the nine months preceding and following implementation of the formulary. When controlling for age, gender, and chronic disease score, the closed formulary was associated with significantly lower increases in utilization and expenditures, a higher prior authorization rate, and a reduced rate of continuation with chronic medications in the nine months following its implementation. These findings have implications for the design of prescription drug benefits.

Managed care in three states: experiences of low-income African Americans and Hispanics.

Abstract: This article examines the experiences of low-income, nonelderly Hispanics, African Americans, and whites in managed care (MC), and compares them to their racial/ethnic counterparts enrolled in fee-for-service (FFS) health plans. Survey findings from Florida, Tennessee, and Texas show that MC and FFS enrollees do not differ substantially on most access and satisfaction measures, with a few notable exceptions. When compared with their FFS counterparts, African-American MC enrollees are twice as likely to report problems in obtaining needed care, and Hispanic MC enrollees are nearly twice as likely to rate the extent to which their providers care about them as "fair" or "poor." In contrast, whites in MC are less likely to be without a regular provider than their FFS counterparts, but report greater dissatisfaction with the extent to which providers care about them.

Do HMOs make a difference? Consumer assessments of health care.

Abstract: This study examines the effects of health maintenance organizations (HMOs) on consumer assessments of health care among the privately insured, nonelderly population. After controlling for population and location differences, the study finds that HMO enrollees are less likely than those in non-HMOs to be satisfied with their care, to rate their last medical visit highly, and to express trust in their physicians. One exception is a finding of little or no statistically significant difference between HMO and non HMO enrollees in the likelihood of distrust that a physician may provide unnecessary services.

Options for Aiding Low Income Medicare Beneficiaries

Abstract: This paper examines ways to improve the Medicare Savings programs, i.e. the Qualified Medicare Beneficiaries Program (QMB) and the Specified Low Income Medicare Beneficiaries program (SLMB). These two programs offer fill-in benefits for Medicare to persons with low incomes. While some of the QMB program serves those with Medicaid, the real advantages are for beneficiaries who otherwise would not qualify for support. But participation has remained low in these programs likely because of lack of knowledge by beneficiaries and lack of enthusiasm by some states that administer QMB and SLMB. Among the options examined were efforts to increase participation by eliminating the asset limits and by federalizing the program. (Inquiry 1998 Fall; 35(3): 346-356).

Capitated contracting of integrated health provider organizations.

Abstract: This paper examines global capitation of integrated health provider organizations that link physicians and hospitals, such as physician-hospital organizations and management service organizations. These organizations have proliferated in recent years, but their contracting activity has not been studied. We develop a conceptual model to understand the capitated contracting bargaining process. Exploratory multivariate analysis suggests that global capitation of these organizations is more common in markets with high health maintenance organization (HMO) market share, greater numbers of HMOs, and fewer physician group practices. Additionally, health provider organizations with more complex case mix, nonprofit status, more affiliated physicians, health system affiliations, and diversity in physician organizational arrangements are more likely to have global capitation. Finally, state regulation of provider contracting with self-insured employers appears to have spillover effects on health plan risk contracting with health providers.

Medicare home health agency utilization, 1984-1994.

Abstract: This study analyzes the determinants of Medicare home health agency (HHA) use in 1984, 1989, and 1994. We estimated a two-part model, modified to adjust for heteroskedasticity, using data from the National Long-Term Care Surveys and the sample members' Medicare claim files. We found an evolving pattern of determinants of Medicare HHA utilization. The rapid increase in use after HHA guideline revisions in 1989 was associated closely with rising importance of limitations in activities of daily living and instrumental activities of daily living as determinants of expected utilization. Our results show little evidence that Medicare home health services substitute for informal home care, though they may reduce the use of skilled nursing facility care.

Access to physicians' services for vulnerable Medicare beneficiaries.

Abstract: This article examines whether changes in physician reimbursement under the Medicare Fee Schedule (MFS) had differential impacts on access to care for vulnerable and nonvulnerable Medicare beneficiaries. The quasi-experimental research design takes advantage of cross-sectional differences in the magnitude of the MFS impact on payments. We selected a stratified random sample to ensure adequate representation of vulnerable group members and constructed service-specific measures of the MFS payment change. While we found few effects on access attributable to the MFS, we did find substantial utilization gaps between vulnerable and nonvulnerable subpopulations for primary care services, as well as for high-cost procedures during episodes of care for acute myocardial infarctions.

Health insurance, health reform, and outpatient mental health treatment: who benefits?

Abstract: This research examines how extending health insurance coverage to the previously uninsured impacts outpatient mental health treatment use among adults with different needs. Using data from the Epidemiologic Catchment Area Study and the 1987 National Medical Expenditure Survey, I develop simulations based on estimates of treatment demand. I find that insurance substantially increases demand by the mentally ill, but increased coverage alone cannot meet their treatment needs. Those in better mental health account for significant proportions of additional demand when coverage is expanded. Policies intended to increase access to mental health treatment among targeted groups should carefully consider the costs of increased use by other people.

Do HMOs make a difference? Summary and implications.

Abstract: The findings of this study of the effects of health maintenance organizations (HMOs) have implications for consumers' choice between HMOs and other types of insurance: consumers face a trade-off that flows in part from the design of HMOs. HMO enrollees get more primary and preventive care and face lower out-of-pocket costs, but they get less specialist care, experience more provider access and organizational barriers to care, and report less satisfaction, lower ratings of care, and less trust in their physicians. Policymakers should recognize that this trade-off will be attractive to some people but not to others.

The impact of medical savings accounts on Medicare program costs.

Abstract: The 1997 Balanced Budget Act provided for a medical savings account (MSA) Medicare demonstration program. This study simulates the impact on Medicare costs of permitting beneficiaries to enroll in MSAs, using a 23,576-person sample of Medicare beneficiaries in 1992. Our simulations differed with respect to assumptions about supplementary insurance coverage, whether the government or the private sector offers MSA coverage, the degree of selection bias, and the size of the induction effects.

The Federal Employees Health Benefits Plan: implications for medicare reform.

Abstract: This paper suggests that the Federal Employees Health Benefits Program (FEHBP) is perhaps a model for Medicare reform. First, we introduce the FEHBP and describe important features, such as the method for determining the government's premium contribution. Second, we examine the cost performance of the FEHBP program, and conclude that the FEHBP has out-performed private health insurance programs and Medicare in its ability to control costs. Third, we discuss the problem of adverse selection in the FEHBP. We conclude that the FEHBP has experienced some selection problems, but not enough to prevent it from offering a wide variety of choices without standardized benefits or direct risk adjustment. For a demonstration of competitive pricing in Medicare, the fourth section compares the FEHBP to two models of Medicare reform: "FEHBP for Medicare," proposed by Butler and Moffit; and the "Denver design."

Health insurance choices in two-worker households: determinants of double coverage.

Abstract: Understanding how households make health insurance choices is of critical importance in evaluating issues of equity and efficiency in health care markets. We consider a largely neglected aspect of such decision making: the decision of families with two working spouses to obtain double coverage. Using data from the 1987 National Medical Expenditure Survey, we find that household decisions to obtain double coverage are especially sensitive to a couple's out-of-pocket premium costs. Our analysis also reveals that households with double coverage have more generous insurance, as reflected in their higher coverage rates for specific types of benefits. We also demonstrate that the presence of duplicate health benefits in double-covered households is not random, possibly reflecting a systematic attempt by working spouses to obtain more extensive coverage.

Do HMOs make a difference? Introduction.

Abstract: The study presented in this and the following five papers analyzes how health maintenance organizations (HMOs) affect privately insured individuals' access to health care, use of services, and assessments of care. Using a common data source and methodology, the study examines differences in a broad range of measures between HMOs and other types of insurance, controlling for health status and an extensive set of other individual characteristics and market location. HMO/non-HMO differences also are examined across population subgroups defined by health status, income, race, and age. Data come from the Community Tracking Study Household Survey, a recent, large national survey. Findings show that a person's type of health insurance coverage has little effect on the likelihood of unmet or delayed needs for medical care in the aggregate, but the types of access problems faced by HMO and non-HMO enrollees differ. HMO enrollees are less likely to face financial barriers to care, but more likely to face barriers related to the organization of care delivery. HMO enrollees use more ambulatory and preventive care, but results show no differences in hospital, surgery, and emergency room use. Compared with other types of insurance, physician visits under HMOs are more likely to be to primary care physicians than to specialists. Finally, across nearly all measures of patients' satisfaction, ratings of their last doctor's visit, and trust in their physicians, HMO enrollees' assessments of care are lower than those of people not in HMOs. Across all measures, the study finds few subgroup differences.

The National Survey of America's Families: an overview of the health policy component.

Abstract: This paper provides an overview of the health policy component of the National Survey of America?s Families (NSAF), fielded as part of the Urban Institute?s Assessing the New Federalism project. The paper is intended to provide policymakers, researchers, and potential users of public use files with an overview of NSAF?s purpose, sampling approach and questionnaire content, with a focus on issues that will be of primary interest to health care researchers. Additionally, we describe planned research using the survey and dates for public release of the NSAF data. (Inquiry 1999 Fall;36(3):353-362)

Does managed care affect the supply and use of ICU services

Abstract: This paper analyzes use of hospital intensive care units (ICUs) by adult patients who are under age 65 and not covered by Medicaid; it allows for variation in indicators of the patient's condition, severity of illness, type of admission, emergency status, and degree of constraint on the total hospital ICU supply. We use data for Massachusetts and Florida in 1992. In neither state is there a significant difference in ICU admission rates between managed care patients and other privately insured patients. In Massachusetts, we find that the length of stay in the ICU is somewhat less for managed care and uninsured patients than for other privately insured patients. In both states, a hospital's ratio of total annual supply of ICU services to expected demand has a strong effect. In Massachusetts, the differences across payer groups in length of stay disappear for hospitals where the total ICU supply is relatively constrained.

Recent determinants of new entry of HMOs into a Medicare risk contract: a diversification strategy.

Abstract: This study provides knowledge of more recent entry of health maintenance organizations (HMOs) into the Medicare risk program than earlier analyses. Based on a diversification framework, this study examines new market entry from three dimensions: attractiveness of the market, market area attributes, and organizational attributes. The analysis uses a 1994-1995 cross-sectional, lagged time sample with 440 HMOs that did not have a Medicare risk contract as of January 1994; it defines an HMO's market as its service area. HMO enrollment growth in the market, individual HMO enrollment size, and adjusted average per capita cost (AAPCC) rates are found to be significant in predicting new market entry.

Consumer protection and the HMO backlash: are HMOs to blame for drive-through deliveries?

Abstract: This study used patient discharge data from New Jersey to examine differences in length of stay for normal, uncomplicated deliveries between patients in health maintenance organizations (HMOs) and those not in HMOs The percentage of one-day stays increased from less than 4% for all payers in 1990 to 481% for HMO patients, and 315% for non-HMO patients in 1994 Controlling for other factors, the odds of an HMO patient staying one day were nearly twice as great as a non-HMO patient by 1994; for all patients, regardless of payer, the odds of a one-day stay in 1994 were more than 18 times the odds of a one-day stay in 1990 The strong secular trend suggests that legislation and regulations should be targeted at particular policies rather than insurers

Lifetime costs and compensation for injuries.

Abstract: Little is known about how well individuals are compensated for injuries. This study uses data from a 1989 survey to estimate both the lifetime costs and compensation for injuries. Our findings show that about 55% of the cost is compensated by public or private programs. Compensation rates are lower for disabling injuries and those of long duration. The results also suggest that compensation system reforms that would place stricter limits on maximum compensation might not be a distributionally fair solution. The reasons are that costs are highly skewed, and the share of costs recovered by compensation programs is currently lowest for injuries that are long term, disabling, and the most expensive.

Utilization of physician services at the end of life: differences between the United States and Canada.

Abstract: This study draws on physician claims for the elderly from the U.S. Medicare program and the Canadian provinces of Quebec and British Columbia to compare physician service use by people with fewer than six months to live relative to those who liver longer. Physician service quantities are expressed in relative value units (RVUs), and aggregated into clinical type-of-service categories. Relative to survivors, those in the United States approaching death receive about the same amount of evaluation and management services as those in Quebec and British Columbia, though less in absolute value; they also receive about the same amount of procedures as those nearing death in British Columbia, but half as much in proportion as people nearing death in Quebec. Further analyses of appropriateness of care to the dying appear no less necessary in Canada than in the United States.