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The Relationship between Commercial Health Care Prices and Medicare Spending and Utilization |
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| Authors: | John A Romley Sarah Axeen Darius N Lakdawalla Michael E Chernew Jay Bhattacharya Dana P Goldman |
| Affiliation: | 1. Schaeffer Center for Health Policy and Economics, Sol Price School of Public Policy, University of Southern California, Los Angeles, CA;2. Schaeffer Center for Health Policy and Economics, School of Pharmacy, Sol Price School of Public Policy, University of Southern California, Los Angeles, CA;3. Department of Health Care Policy, Harvard Medical School, Boston, MA;4. Stanford University School of Medicine, Stanford, CA |
| Abstract: | ObjectiveTo explore the relationship between commercial health care prices and Medicare spending/utilization across U.S. regions.ConclusionsCommercial health care prices are negatively associated with Medicare spending across regions. Providers may respond to low commercial prices by shifting service volume into Medicare. Further investigation is needed to establish causality. |
| Keywords: | Geographic variation health care spending spillovers in health care provider competition and health care prices supplied-inducer demand |