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Sources of Geographic Variation in Health Care Spending Among Individuals With Employer Sponsored Insurance
| Content Provider | SAGE Publishing |
|---|---|
| Author | Johnson, William C. Biniek, Jean Fuglesten |
| Copyright Year | 2020 |
| Abstract | We use health care claims data from the Health Care Cost Institute to estimate the share of geographic variation in health care spending attributable to person-specific (demand) and place-specific (supply) factors. We exploit patient migration across 112 metropolitan areas between 2012 and 2016. Using an event study approach, we find that moving to an area with 10% higher (lower) spending leads to a 4.2% increase (decrease) in individual medical spending. Our estimate implies that 42% of variation in health care spending among the commercially insured is attributable to place-specific factors. We show that variation in both price and utilization jointly determine the place-specific impact on individual spending. All else equal, we find that moving to an area with 10% higher (lower) prices, on average leads to a 5% increase (decrease) in spending, while moving to an area with 10% higher (lower) utilization leads to a 3.6% increase (decrease). |
| Related Links | https://journals.sagepub.com/doi/pdf/10.1177/1077558720926095?download=true |
| Starting Page | 548 |
| Ending Page | 560 |
| Page Count | 13 |
| ISSN | 10775587 |
| Issue Number | 5 |
| Volume Number | 78 |
| Journal | Medical Care Research and Review (MCR) |
| e-ISSN | 15526801 |
| DOI | 10.1177/1077558720926095 |
| Language | English |
| Publisher | Sage Publications CA |
| Publisher Date | 2020-07-06 |
| Publisher Place | Los Angeles |
| Access Restriction | Open |
| Rights Holder | © The Author(s) 2020 |
| Subject Keyword | geographic variation health care spending employer-sponsored health insurance health care prices health care utilization |
| Content Type | Text |
| Resource Type | Article |
| Subject | Health Policy |
