Randomized trial shows healthcare payment reform has equal-sized spillover effects on patients not targeted by reform

Citation:

Liran Einav, Amy Finkelstein, Yunan Ji, and Neale Mahoney. 7/27/2020. “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. Publisher's Version

Abstract:

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.

Notes:

  • Summary of study on J-PAL
Last updated on 07/27/2020