Changing mix of medical care services: Stylized facts and implications for price indexes
The utilization of health care services has undergone several important shifts in recent years that have implications for the cost of medical care. We empirically document the presence of these shifts for a broad list of medical conditions and assess the implications for price indexes. Following the earlier literature, we compare the growth of two price measures: one that tracks expenditures for the services actually provided to treat conditions and another that holds the mix of those services fixed over time. Using retrospective claims data for a sample of commercially insured patients, we find that, on average, expenditures to treat diseases rose 11% from 2003Q1 to 2005Q4 and would have risen even faster, 18%, had the mix of services remained fixed at the 2003Q1 levels. This suggests that fixed-basket price indexes, as are used in the official statistics, could overstate true price growth significantly.
Year of publication: |
2011
|
---|---|
Authors: | Aizcorbe, Ana ; Nestoriak, Nicole |
Published in: |
Journal of Health Economics. - Elsevier, ISSN 0167-6296. - Vol. 30.2011, 3, p. 568-574
|
Publisher: |
Elsevier |
Keywords: | Price Indexes Productivity Health care spending |
Saved in:
Online Resource
Saved in favorites
Similar items by person
-
Aizcorbe, Ana, (2011)
-
Changing mix of medical care services : stylized facts and implications for price indexes
Aizcorbe, Ana M., (2011)
-
Price indexes for drugs : a review of the issues
Aizcorbe, Ana M., (2010)
- More ...