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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:ImportanceVarious policy proposals would reduce federal payments to Medicare Advantage (MA) plans. However, it is unclear whether payment reductions would compromise beneficiary access to the MA program.ObjectiveTo quantify the association between MA payment reductions under the Affordable Care Act (ACA) and MA enrollment growth.Design, setting, and participantsThis retrospective cohort study examined the MA market before and after the ACA, which mandated cuts to MA benchmark payment rates. Using 2008 to 2019 county-level enrollment and payment data, a difference-in-differences analysis was conducted comparing MA enrollment changes between counties with larger vs smaller benchmark reductions, before vs after the ACA.Main outcomes and measuresThe primary outcome was the MA enrollment rate, defined as the proportion of a county's Medicare beneficiaries enrolled in MA. A secondary analysis examined MA plan payments per member per month.ResultsAmong 3138 counties with 37 639 county-year observations, ACA-induced benchmark cuts were sizeable and varied, ranging from 0% to 42.9% (mean [SD], 5.9% [6.6%]). Counties with benchmark cuts above the 75th percentile had population-weighted average benchmark cuts of 14.9% compared with 4.4% in other counties. In the 8 years following the ACA, there was no differential change in MA enrollment between counties with larger vs smaller benchmark cuts (difference-in-differences estimate, 0.02 [95% CI, -1.18 to 1.21] percentage points; P = .98). Plan payments differentially fell in counties with larger benchmark cuts by $78.35 (95% CI, $62.21-$94.48) per member per month (P < .001).Conclusion and relevanceThis cohort study found no evidence that the MA benchmark and ensuing payment cuts imposed by the ACA were associated with reduced MA enrollment, compromising access to MA. This evidence can inform ongoing policy debates regarding the growth of MA, concerns about excess payments to MA plans, and proposed Medicare reforms, including further reductions in MA payments.

Project description:ImportanceHealth insurance literacy helps individuals make informed choices. However, evidence suggests that Medicare beneficiaries experience low health insurance literacy, leading to high-cost or poor-quality coverage choices.ObjectiveTo examine how health insurance literacy was associated with coverage choices between traditional Medicare (TM) and Medicare Advantage (MA), as well as within MA.Design, setting, and participantsThis cross-sectional study included 6627 TM and MA enrollees, using data from the 2015-2016 Medicare Current Beneficiary Survey. Data analyses were conducted between May 1 and June 30, 2021.ExposuresThree self-reported measures of health insurance literacy (presence of information to make an informed comparison, ease in reviewing and comparing coverage options, and annual review and comparison of coverage options).Main outcomes and measuresEnrollment in TM vs MA and enrollment in an MA plan with different characteristics (star rating, monthly plan premium, in-network maximum out-of-pocket limit, plan type, and provision of supplemental benefits).ResultsWe included 6627 Medicare beneficiaries (3578 women [54.0%]; mean [SD] age, 75.13 [7.12] years). A total of 77 individuals were Asian (1.2%), 696 were Black (10.5%), 488 were Hispanic (7.4%), 5277 were non-Hispanic White (79.6%), and 225 (3.4%) were single races not of Hispanic origin (including American Indian or Alaska Native and Native Hawaiian) or were 2 or more races. Medicare Advantage enrollment was higher among individuals with higher health insurance literacy than those with lower health insurance literacy, especially for those who reviewed or compared coverage options annually than among those who did not (38.0%; 95% CI, 36.0%-40.1% vs 27.8%; 95% CI, 25.8%-29.7%). Among MA beneficiaries, those who reviewed or compared coverage options annually were more likely to enroll in plans with 4 to 4.5 stars and plans with monthly premiums of $1 to $50 by 4.6 percentage points (95% CI, 0.1-9.2 percentage points) and 4.8 percentage points (95% CI, 0.6-9.0 percentage points), respectively. However, enrollment in plans with 5 stars was 3.8 percentage points lower (95% CI, -5.8 to -1.9 percentage points) among individuals who reviewed or compared coverage options annually than among those who did not. Among individuals with low socioeconomic status, the likelihood of reviewing or comparing coverage options annually was lower for those with Medicare and Medicaid dual eligibility than for those without it (odds ratio, 0.79; 95% CI, 0.63-0.99).Conclusions and relevanceResults of this study suggest that higher health insurance literacy-particularly, annual review and comparison of coverage choices-is associated with higher MA enrollment and choice of a particular MA plan. Policy makers should develop programs to encourage frequent review and comparison of coverage options for informed decision making.

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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