Randomized trial shows healthcare payment reform has equal-sized spillover effects on patients not targeted by reform
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Changes in the way health insurers pay healthcare providers may not only directly affect the insurer's patients but may also affect patients covered by other insurers. We provide evidence of such spillovers in the context of a nationwide Medicare bundled payment reform that was implemented in some areas of the country but not in others, via random assignment. We estimate that the payment reform-which targeted traditional Medicare patients-had effects of similar magnitude on the healthcare experience of nontargeted, privately insured Medicare Advantage patients. We discuss the implications of these findings for estimates of the impact of healthcare payment reforms and more generally for the design of healthcare policy.
DepartmentMassachusetts Institute of Technology. Department of Economics
Proceedings of the National Academy of Sciences of the United States of America
Proceedings of the National Academy of Sciences
Einav, Liran et al. “Randomized trial shows healthcare payment reform has equal-sized spillover effects on patients not targeted by reform.” Proceedings of the National Academy of Sciences of the United States of America, 117, 32 (August 2020): 18939–18947 © 2020 The Author(s)
Final published version