Replication data for: Technological Change and Risk Adjustment: Benefit Design Incentives in Medicare Part D

Principal Investigator(s): View help for Principal Investigator(s) Colleen Carey

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Project Citation:

Carey, Colleen. Replication data for: Technological Change and Risk Adjustment: Benefit Design Incentives in Medicare Part D. Nashville, TN: American Economic Association [publisher], 2017. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2019-10-13. https://doi.org/10.3886/E114609V1

Project Description

Summary: Subsidized health insurance markets use diagnosis-based risk adjustment to induce insurers to offer an equitable benefit to individuals of varying expected cost. I demonstrate that technological change after risk adjustment calibration--new drug entry and the onset of generic competition--made certain diagnoses profitable or unprofitable in Medicare Part D. I then exploit variation in diagnoses' profitability driven by technological change to show insurers designed more favorable benefits for drugs that treat profitable diagnoses as compared to unprofitable diagnoses. In the presence of technological change, risk adjustment may not fully neutralize insurers' incentives to select through benefit designs.

Scope of Project

Subject Terms: risk adjustment; managed competition; pharmaceuticals; Medicare Part D

JEL Classification:
      G22 Insurance; Insurance Companies; Actuarial Studies
      H51 National Government Expenditures and Health
      I13 Health Insurance, Public and Private
      I18 Health: Government Policy; Regulation; Public Health
      L65 Chemicals; Rubber; Drugs; Biotechnology; Plastics
      O33 Technological Change: Choices and Consequences; Diffusion Processes

Geographic Coverage: United States

Universe: Medicare Part D plans

Data Type(s): administrative records data; medical records

Methodology

Data Source: Center for Medicare and Medicaid Services

Unit(s) of Observation: insurance plan X drug for key analysis,

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Published Versions

V1 [2019-10-13]

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Dublin Core

DDI 2.5

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