2018
DOI: 10.1377/hlthaff.2018.0143
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Trends In Medicare Fee-For-Service Spending Growth For Dual-Eligible Beneficiaries, 2007–15

Abstract: Cost containment for dual-eligible beneficiaries (those enrolled in Medicare and Medicaid) is a key policy goal, but few studies have examined spending trends for this population. We contrasted growth in Medicare fee-for-service per beneficiary spending for those with and without Medicaid in the period 2007-15. Relative to Medicare-only enrollees, dual-eligible beneficiaries consistently had higher overall Medicare spending levels; however, they experienced steeper declines in spending growth over the study pe… Show more

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Cited by 25 publications
(29 citation statements)
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“…By 2012, the cumulative growth in actual spending dropped slightly below the CMS estimate, implying that the states began to subsidize the federal government in aggregate. This finding is consistent with Keohane et al (2018), who show that dual-eligible spending growth slowed dramatically around 2010 relative to the general Medicare population, and with Cutler et al (2019), who document that the growth of medical spending by the elderly declined during this period. 22 Extrapolating beyond 2012, the direction of the aggregate subsidy will depend on how the dual-eligibles utilize prescription drugs relative to the Medicare Part D population overall.…”
Section: Intergovernmental Subsidization Of Dual-eligible Prescription Drug Spendingsupporting
confidence: 88%
“…By 2012, the cumulative growth in actual spending dropped slightly below the CMS estimate, implying that the states began to subsidize the federal government in aggregate. This finding is consistent with Keohane et al (2018), who show that dual-eligible spending growth slowed dramatically around 2010 relative to the general Medicare population, and with Cutler et al (2019), who document that the growth of medical spending by the elderly declined during this period. 22 Extrapolating beyond 2012, the direction of the aggregate subsidy will depend on how the dual-eligibles utilize prescription drugs relative to the Medicare Part D population overall.…”
Section: Intergovernmental Subsidization Of Dual-eligible Prescription Drug Spendingsupporting
confidence: 88%
“…Dual-eligible beneficiaries meet a state’s income and disease cutoffs for Medicaid coverage and federal Medicare eligibility requirements. 38 We stratified all analysis by dual eligibility because dual-eligible participants are allowed to switch to TM at any time, have most of their cost sharing paid for by Medicaid, and may constitute a substantially different enrollee population. Data for identifying high-need status came from the Medicare Provider and Analysis Review file for hospitalizations, 14 the Minimum Data Set for nursing home stays, the Outcome and Assessment Information Set for home health, and the Inpatient Rehabilitation Facility-Patient Assessment Instrument for rehabilitation services.…”
Section: Methodsmentioning
confidence: 99%
“…Although this analy-sis does not capture spending for outpatient services that are not linked to an inpatient admission, prior work demonstrates that annual growth in total Medicare spending per beneficiary (episode related or not) has recently declined for the inpatient sector but increased for outpatient and physician sectors. 30 By offering other outpatient services, hospitals may be able to recoup some declining inpatient revenues. However, outpatient services are reimbursed at a lower rate than inpatient services, suggesting these trends may create financial pressure for hospitals.…”
Section: Discussionmentioning
confidence: 99%
“…Some services, such as elective surgeries, have probably shifted from an inpatient to an outpatient setting, which would be consistent with our finding that there are larger relative declines in planned hospitalizations. Although this analysis does not capture spending for outpatient services that are not linked to an inpatient admission, prior work demonstrates that annual growth in total Medicare spending per beneficiary (episode‐related or not) has recently declined for the inpatient sector but increased for outpatient and physician sectors 30 . By offering other outpatient services, hospitals may be able to recoup some declining inpatient revenues.…”
Section: Discussionmentioning
confidence: 99%