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The effects of plan payment rates on the market for Medicare Advantage Dual-Eligible Special Needs Plans.

ABSTRACT: OBJECTIVE:To determine the effect of higher potential benchmark payment rates on the market for Medicare Advantage (MA) Dual-Eligible Special Needs Plans (D-SNPs). DATA SOURCES/STUDY SETTING:Publicly available county-level data from 2009 to 2015 regarding the number of D-SNPs operating within the county, the enrollment in and five-star quality of score of these plans, and the benchmark amounts used to determine capitated plan payments. STUDY DESIGN:This study exploits the introduction of quality bonus payments to the MA program in 2012, and exogenous geographic variation in the potential size of these bonuses to estimate the effect of benchmark payment increases on the availability, quality, and take-up of D-SNPs. We use a difference-in-difference estimation approach to compare changes in the market for D-SNPs in counties eligible for a double bonus to those that are not. PRINCIPAL FINDINGS:The doubling of bonuses was associated with a relative 29 percent increase in the number of D-SNPs offered (P = 0.021) and 0.1-star increase in the average quality of available D-SNPs (P = 0.034). No relative increase in overall D-SNP enrollment was detected. CONCLUSIONS:These findings indicate that larger benchmark payment amounts may influence insurers' decisions of whether to participate in the D-SNP market but not dual-eligibles' decision of whether to enroll in these plans. Future research is needed to inform discussions about whether D-SNPs are a viable mechanism for integrating benefits for dual eligibles and the degree to which Medicare policies should support their continued growth.

SUBMITTER: McGarry BE

PROVIDER: S-EPMC6736914 | biostudies-literature | 2019 Oct

REPOSITORIES: biostudies-literature

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The effects of plan payment rates on the market for Medicare Advantage Dual-Eligible Special Needs Plans.

McGarry Brian E BE Layton Timothy J TJ Grabowski David C DC

Health services research 20190520 5

<h4>Objective</h4>To determine the effect of higher potential benchmark payment rates on the market for Medicare Advantage (MA) Dual-Eligible Special Needs Plans (D-SNPs).<h4>Data sources/study setting</h4>Publicly available county-level data from 2009 to 2015 regarding the number of D-SNPs operating within the county, the enrollment in and five-star quality of score of these plans, and the benchmark amounts used to determine capitated plan payments.<h4>Study design</h4>This study exploits the i ...[more]

PMID: 31111471

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Project description:Differences in the control of blood pressure, cholesterol, and glucose among the various racial and ethnic groups of Medicare enrollees may contribute to persistent disparities in health outcomes.Among elderly enrollees in Medicare Advantage health plans in 2011 who had hypertension (94,171 persons), cardiovascular disease (112,039), or diabetes (105,848), we compared the respective age-and-sex-adjusted proportions with blood pressure lower than 140/90 mm Hg, low-density lipoprotein cholesterol levels below 100 mg per deciliter (2.6 mmol per liter), and a glycated hemoglobin value of 9.0% or lower, according to race or ethnic group. Comparisons were made nationally and within regions and health plans, and changes since 2006 were assessed.Black enrollees in 2006 and 2011 were substantially less likely than white enrollees to have adequate control of blood pressure (adjusted absolute differences in proportions of enrollees in the 2 years, 7.9 percentage points and 10.3 percentage points, respectively), cholesterol (11.4 percentage points and 10.2 percentage points, respectively), and glycated hemoglobin (10.1 percentage points and 9.4 percentage points, respectively) (P<0.001 for all comparisons). Differing distributions of enrollees among health plans accounted for 39 to 59% of observed disparities in 2011. These differences persisted in 2011 in the Northeast, Midwest, and South (6.9 to 14.1 percentage points, P<0.001 for all comparisons) but were eliminated in the West for all three measures (<1.5 percentage points, P?0.15). Hispanic enrollees were less likely than whites in 2011 to have adequate control of blood pressure (adjusted difference, 1.6 percentage points), cholesterol (adjusted difference, 1.0 percentage points), and glycated hemoglobin (adjusted difference, 3.4 percentage points) (P?0.02 for all comparisons). Asians and Pacific Islanders were more likely than whites to have adequate control of blood pressure (difference, 4.4 percentage points; P<0.001) and cholesterol (5.5 percentage points, P<0.001) and had similar control of glycated hemoglobin (0.3 percentage points, P=0.63).Disparities in control of blood pressure, cholesterol, and glucose have not improved nationally for blacks in Medicare Advantage plans, but these disparities were eliminated in the West in 2011. (Funded by the National Institute on Aging.).

Project description:BackgroundTo determine if requiring Dual Eligible Special Need Plans (D-SNPs) to receive approval from the National Committee of Quality Assurance and contract with state Medicaid agencies impacts healthcare utilization.MethodsWe use a Multiple Interrupted Time Series to examine the association of D-SNP regulations with dichotomized measures of emergency room (ER) and hospital utilization. Our treatment group is elderly D-SNP enrollees. Our comparison group is near-elderly (ages 60-64) beneficiaries enrolled in Medicaid Managed Care plans (N = 360,405). We use segmented regression models to estimate changes in the time-trend and slope of the outcomes associated with D-SNP regulations, during the post-implementation (2012-2015) period, relative to the pre-implementation (2010-2011) period. Models include a treatment-status indicator, a monthly time-trend, indicators and splines for the post-period and the interactions between these variables. We conduct the following sensitivity analyses: (1) Re-estimating models stratified by state (2) Estimating models including interactions of D-SNP implementation variables with comorbidity count to assess for differential D-SNP regulation effects across comorbidity level. (3) Re-estimating the models stratifying by race/ethnicity and (4) Including a transition period (2012-2013) in the model.ResultsWe do not find any statistically significant changes in ER or hospital utilization associated with D-SNP regulation implementation in the broad D-SNP population or among specific racial/ethnic groups; however, we do find a reduction in hospitalizations associated with D-SNP regulations in New Jersey (DD level = - 3.37%; p = 0.02)/(DD slope = - 0.23%; p = 0.01) and among individuals with higher, relative to lower levels of co-morbidity (DDD slope = - 0.06%; p = 0.01).ConclusionsThese findings suggest that the impact of D-SNP regulations varies by state. Additionally, D-SNP regulations may be particularly effective in reducing hospital utilization among beneficiaries with high levels of co-morbidity.

Dataset Information

The effects of plan payment rates on the market for Medicare Advantage Dual-Eligible Special Needs Plans.

Publications

The effects of plan payment rates on the market for Medicare Advantage Dual-Eligible Special Needs Plans.

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