Research Conducted at National Bureau of Economic Research Has Provided New Information about Medicare and Medicaid (In the Shadow of a Giant:…

Managed Care Weekly Digest

Research Conducted at National Bureau of Economic Research Has Provided New Information about Medicare and Medicaid (In the Shadow of a Giant: Medicare's Influence on Private Physician Payments)

By a News Reporter-Staff News Editor at Managed Care Weekly Digest -- Data detailed on Medicare and Medicaid have been presented. According to news reporting out of Cambridge, Massachusetts, by NewsRx editors, research stated, "We analyze Medicare's influence on private insurers' payments for physicians' services. Using a large administrative change in reimbursements for surgical versus medical care, we find that private prices follow Medicare's lead."

Our news journalists obtained a quote from the research from the National Bureau of Economic Research, "A $1.00 increase in Medicare's fees increases corresponding private prices by $1.16. A second set of Medicare fee changes, which generates area-specific payment shocks, has a similar effect on private reimbursements. Medicare's influence is strongest in areas with concentrated insurers and competitive physician markets, consistent with insurer-doctor bargaining."

According to the news editors, the research concluded: "By echoing Medicare's pricing changes, these payment spillovers amplify Medicare's impact on specialty choice and other welfare-relevant aspects of physician practices."

For more information on this research see: In the Shadow of a Giant: Medicare's Influence on Private Physician Payments. Journal of Political Economy, 2017;125(1):1-39. Journal of Political Economy can be contacted at: Univ Chicago Press, 1427 E 60TH St, Chicago, IL 60637-2954, USA. (University of Chicago Press - press.uchicago.edu; Journal of Political Economy - /ucp/journals/journal/jpe.html)

Our news journalists report that additional information may be obtained by contacting J. Clemens, Natl Bur Econ Res, Cambridge, MA 02138, United States (see also Medicare and Medicaid).

Keywords for this news article include: Cambridge, Massachusetts, United States, North and Central America, Medicare and Medicaid, Health Policy, Medicare, National Bureau of Economic Research.