NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Managed Care Discounting: Evidence from the MarketScan Database

Avi Dor, Siran M. Koroukian, Michael Grossman

NBER Working Paper No. 10437
Issued in April 2004
NBER Program(s):   HE

The paper examines price discounting by health maintenance organizations and preferred provider organizations in markets for hospital services. Our empirical analysis focuses on transaction prices for angioplasty, which is a relatively common procedure, with well defined 'product' characteristics. After controlling for patient and procedure heterogeneity and market power we find that on average prices for PPOs are 8% lower than fee-for-service plans, followed by point-of-service HMOs who capture a 24% discount. Our results are in general agreement with earlier work that shows that managed care discounts are 'real', after accounting for process of care.

download in pdf format
   (555 K)

email paper

The NBER Bulletin on Aging and Health provides summaries of publications like this.  You can sign up to receive the NBER Bulletin on Aging and Health by email.

This paper is available as PDF (555 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w10437

Published: Dor, Avi, Siran M. Koroukian and Michael Grossman. "Managed Care Discounting: Evidence From The MarketScan Database," Inquiry - Excellus Health Plan, 2004, v41(2,Summer), 159-169.

Users who downloaded this paper also downloaded these:
Dor, Grossman, and Koroukian w10377 Transaction Prices and Managed Care Discounting for Selected Medical Technologies: A Bargaining Approach
Kessler and McClellan w7266 Is Hospital Competition Socially Wasteful?
Gaynor, Li, and Vogt w12758 Is Drug Coverage a Free Lunch? Cross-Price Elasticities and the Design of Prescription Drug Benefits
Dor and Encinosa w10738 How Does Cost-Sharing Affect Drug Purchases? Insurance Regimes in the Private Market for Prescription Drugs
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us