Full Citation

Title: In the Shadow of a Giant: Medicare's Influence on Private Physician Payments

Citation Type: Journal Article

Publication Year: 2017

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ISSN:

DOI: https://doi.org/10.1086/689772

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Abstract: 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. 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. By echoing Medicare’s pricing changes, these payment spillovers amplify Medicare’s impact on specialty choice and other welfare-relevant aspects of physician practices.

Url: https://www.journals.uchicago.edu/doi/full/10.1086/689772

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Authors: Clemens, Jeffrey; Gottlieb, Joshua

Periodical (Full): Journal of Political Economy

Issue: 1

Volume: 125

Pages:

Data Collections: IPUMS USA

Topics: Health, Other

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