Long-term determinants of patterns of health insurance coverage in the Medicare population

Adverse selection and health insurance decisions of young migrant workers: An empirical study in China

Using data from the China Migrants Dynamic Survey (CMDS) in 2017, this study assessed adverse selection and the impact of mobility factors on adverse selection by analyzing two samples of young migrant workers. The results of the sample analysis showed that young migrant workers with higher health risks were more inclined to enroll in health insurance, indicating the presence of adverse selection. Mobility distance and settle intention have a heterogeneous effect on adverse selection, with young workers who migrate inter-provincially and intend to settle down being more susceptible. The analysis of the insured samples showed that the phenomenon of adverse selection was also evident in the choice of health insurance, with individuals with higher risks preferring Urban Employee Basic Medical Insurance (UEBMI), which has better financial coverage and benefits compared to Rural Residents' Basic Medical Insurance (URRBMI). The heterogeneity test confirmed that mobility distance plays a role in determining the likelihood of adverse selection, with inter-city and inter-province young migrant workers being more likely to show adverse selection.

The validity and reliability of the Socioeconomic Status Instrument for assessing prostate cancer patients

BACKGROUND

Because of the lack of consistency in the associations of the socioeconomic status (SES) of prostate cancer (PC) patients from diverse racial and ethnic backgrounds with PC health outcomes, I created the Socioeconomic Status Instrument (SESI) from the Demographic and Health Access components of the Behavioral Risk Factor Surveillance System 2004 Questionnaires and the socioeconomic indices of the subjects' residential counties to better assess the SES of PC patients.

METHODS

The SESI was tested on 220 consecutive subjects with pathologically confirmed PC at the Veterans Affairs Medical Center in Houston, TX. A team that included an epidemiologist, a validation statistician/health services research scientist, and PC survivors assessed the content validity of the SESI. The construct validity of the SESI was assessed with factor analysis by extracting and analyzing 5 principal components based on the subjects' individual responses on the assessment: county socioeconomic characteristics, individual socioeconomic characteristics, financial distress, increased domestic burden with limited earnings, and affluence. The internal consistency reliability of the SESI was assessed with Cronbach's alpha coefficients.

RESULTS

Based on the reviews of the SESI, all of the initial 10 items were retained. The correlations between individual responses on the SESI were similar to the results of previous studies. The 5 principal components that I assessed accounted for 71.5% of the variance. Factor loadings ranged from 0.66 to 0.98 and communalities ranged from 0.55 to 0.94. County socioeconomic characteristics accounted for 22.6% of the variance, whereas individual socioeconomic characteristics accounted for 14.6% of the variance. The overall Cronbach's alpha coefficient was 0.78.

CONCLUSIONS

The SESI is valid and reliable. Accurate measurements of the SES of PC patients would provide better guidance for future research and care deliveries.

Prescription drug coverage among elderly and disabled Americans: can Medicare-Part D reduce inequities in access?

This paper explores the determinants of demand for prescription drug coverage among the elderly population in the United States, using data from the Medical Expenditure Panel Survey (MEPS) and seeks to analyse the impact that the Medicare prescription drug coverage bill (Medicare-Part D) has on Medicare beneficiaries. The results indicate that individuals who are Hispanic, black, or of another race or ethnicity, over the age of 74, not married, in poor health, fall into the low- to middle-income brackets, and have less than a high school degree are more likely to be covered through a public program, more likely to be uninsured for prescription medicine outlays, and less likely to have private prescription drug coverage. The paper concludes that there is cause for considerable concern for low income citizens who have significant prescription drug outlays, and, therefore, the greatest need because their prescription drug costs may not be covered beyond a certain limit unless they reach catastrophic proportions. This continues to raise equity in access concerns among elderly patients.

Prescription drug coverage and effects on drug expenditures among elderly Medicare beneficiaries

OBJECTIVE

To identify determinants of drug coverage among elderly Medicare beneficiaries and to investigate the impact of drug coverage on drug expenditures with and without taking selection bias into account.

DATA SOURCES/STUDY SETTING

The primary data were from the 2000 Medicare Current Beneficiary Survey (MCBS) Cost and Use file, linked to other data sources at the county or state-level that provided instrumental variables. Community-dwelling elderly Medicare beneficiaries who completed the survey were included in the study (N=7,525). A probit regression to predict the probability of having drug coverage and the effects of drug coverage on drug expenditures was estimated by a two-part model, assuming no correlation across equations. In addition, the discrete factor model estimated choice of drug coverage and expenditures for prescription drugs simultaneously to control for self-selection into drug coverage, allowing for correlation of error terms across equations.

PRINCIPAL FINDINGS

Findings indicated that unobservable characteristics leading elderly Medicare beneficiaries to purchase drug coverage also lead them to have higher drug expenditures on conditional use (i.e., adverse selection), while the same unobservable factors do not influence their decisions whether to use any drugs. After controlling for potential selection bias, the probability of any drug use among persons with drug coverage use was 4.5 percent higher than among those without, and drug coverage led to an increase in drug expenditures of $308 among those who used prescription drugs.

CONCLUSIONS

Given significant adverse selection into drug coverage before the implementation of the Medicare Prescription Drug Improvement and Modernization Act, it is essential that selection effects be monitored as beneficiaries choose whether or not to enroll in this voluntary program.

Supplemental private health insurance and depressive symptoms in older married couples

Stress process theory is applied to examine lack of supplemental private health insurance as a risk factor for depressive symptomatology among older married couples covered by Medicare. Dyadic data from 130 African-American couples and 1,429 White couples in the 1993 Asset and Health Dynamics Among the Oldest-Old Survey were analyzed using hierarchical generalized linear modeling. Lack of supplemental insurance is operationalized at the household level in terms of neither spouse covered, one spouse covered, or both spouses covered. Controlling for covariates at both individual and couple levels, supplemental insurance has significant impact on depression, but the pattern differs by race. White couples report the highest depression when neither spouse is covered by private health insurance; African-American couples report the highest depression when only one spouse is covered. Results suggest lack of supplemental private health insurance coverage is a stressor that significantly affects depressive symptoms.

Evaluating the effect of regulatory prohibitions against risk selection by health status on supplemental insurance ownership in Israel

In Israel, supplemental insurance, which covers services not included in the mandatory basic benefits package, is offered by sick funds and regulated by the Ministry of Health. In 1998, policy regulations were set to eliminate barriers that prevented the ill from purchasing supplemental insurance, thereby increasing equality and risk solidarity. In this paper, we examine whether these regulations have indeed changed the extent of ownership and characteristics of policyholders, using data from surveys conducted in 1995, 1997, 1999, and 2001. The findings indicate that while there were no significant changes between 1995 and 1997, there was a significant increase in ownership among those with poor health status after the new regulations came into effect. We conclude that administrative regulations can influence the structure of supplemental insurance to achieve desired social values, and discuss additional policy options that are currently under debate in Israel to further promote equality and solidarity in this market by increasing accessibility to low income and other underserved populations.

Are Healthier Older Adults Choosing Managed Care?

PURPOSE

We attempt to determine whether older workers and early retirees avoid managed care plans and to explore whether health plan choices are linked to the health status of workers or their spouses.

DESIGN AND METHODS

We use the responses of those born between 1931 and 1941 to the 1994 and 1998 waves of the Health and Retirement Survey. We analyze current workers and early retirees separately, using cross-tabular and multinomial logit techniques.

RESULTS

Among older adults with active worker coverage, 60% were enrolled in either a health maintenance organization or preferred provider organization in 1998; 42% of early retirees were enrolled in these plans. Those with a choice of plans were even more likely to be in managed care. When demographic characteristics, time, and differences in the benefits and cost of the various plans offered by an employer are controlled for, health status (measured in a variety of ways) has little bearing on an older worker's choice of health plan.

IMPLICATIONS

These findings suggest that older workers choose plans much as younger workers do. Employers are likely to continue to offer managed care as their workers age. The lack of unidirectional findings on health status bodes well for the long-term practicality of managed care under Medicare. Many workers are choosing an insurance type early in their tenure and remaining with that type of plan as they age.

Medigap premiums and Medicare HMO enrollment

OBJECTIVE

Markets for Medicare HMOs (health maintenance organizations) and supplemental Medicare coverage are often treated separately in existing literature. Yet because managed care plans and Medigap plans both cover services not covered by basic Medicare, these markets are clearly interrelated. We examine the extent to which Medigap premiums affect the likelihood of the elderly joining managed care plans.

DATA SOURCES

The analysis is based on a sample of Medicare beneficiaries drawn from the 1996-1997 Community Tracking Study (CTS) Household Survey by the Center for Studying Health System Change. Respondents span 56 different CTS sites from 30 different states. Measures of premiums for privately-purchased Medigap policies were collected from a survey of large insurers serving this market. Data for individual, market, and HMO characteristics were collected from the CTS, InterStudy, and HCFA (Health Care Financing Administration).

STUDY DESIGN

Our analysis uses a reduced-form logit model to estimate the probability of Medicare HMO participation as a function of Medigap premiums controlling for other market- and individual-level characteristics. The logit coefficients were then used to simulate changes in Medicare participation in response to changes in Medigap premiums.

PRINCIPAL FINDINGS

We found that Medigap premiums vary considerably among the geographic markets included in our sample. Measures of premiums from different insurers and for different types of Medigap policies were generally highly correlated across markets. Our models consistently indicate a strong positive relationship between Medigap premiums and HMO participation. This result is robust across several specifications. Simulations suggest that a one standard deviation increase in Medigap premiums would increase HMO participation by more than 8 percentage points.

CONCLUSIONS

This research provides strong evidence that Medigap premiums have a significant effect on seniors' participation in Medicare HMOs. Policy initiatives aimed at lowering Medigap premiums will likely discourage enrollment in Medicare HMOs, holding other factors constant. Although the Medigap premiums are just one factor affecting the future penetration rate of Medicare HMOs, they are an important driver of HMO enrollment and should be considered carefully when creating policy related to seniors' supplemental coverage. Similarly, our results imply that reforms to the Medicare HMO market would influence the demand for Medigap policies.

Supplemental insurance: Medicare's accidental stepchild

The majority of Medicare beneficiaries supplement the basic Medicare benefit package with additional insurance. This article reviews the literature on Medicare supplemental insurance. Supplemental insurance plays a significant role in protecting Medicare beneficiaries from financial risk. The two major sources of coverage for beneficiaries--former employers and individual purchase--differ in benefit structure and characteristics of policy holders. Employer-sponsored policies tend to provide broader coverage with more cost sharing than individually purchased policies, and holders of employer policies tend to be younger, wealthier, healthier, and better educated. Supplemental insurance policies have been shown to be associated with higher Medicare expenditures, but there is no consensus on the cause of the higher expenditures. Some studies attribute the increase to adverse selection of policies; other studies point to the moral hazard effect of insurance.

Oral health in the United States: the post-fluoride generation

Tremendous strides have been made in reducing the incidence of tooth decay, periodontal diseases, and associated loss of teeth in adults and children since the inception of community water fluoridation programs. Yet the disadvantaged and poor have not fully shared in the benefits. Other challenges to oral health remain. Oral cancer and related smoking and smokeless tobacco use remain major public health problems. Access to preventive and therapeutic dental care is far from universal. Public health programs similar in commitment to the approach of community water fluoridation programs initiated in the 1950s and 1960s are needed to address neglected oral health needs of underserved and high-risk populations in the United States.

Insurance coverage for prescription drugs: effects on use and expenditures in the Medicare population

BACKGROUND

Although most of the elderly are covered by Medicare, they potentially face large out-of-pocket costs for their health care because of excluded services. Aside from nursing home care, the exclusion of prescription drugs is one of the most significant. Several earlier policy initiatives have proposed adding prescription drug coverage to the Medicare program. To determine the effects of such an expansion, one must account for the potential increase in the demand for prescription drugs from providing insurance coverage.

METHODS

The study uses a new data source, the RAND Elderly Health Supplement to the 1990 Panel Study of Income Dynamics (PSID). The endogenity of insurance coverage is tested using instruments that exploit the longitudinal nature of the data. Equations are estimated on 910 persons (> or = 66 years) using a two-part model.

RESULTS

Insurance coverage for prescription drugs significantly increases the probability of use, but not of total expenditures, among those who use prescription drugs. However, insurance coverage significantly lowers out-of-pocket expenditures, thereby decreasing the financial burden on elderly households associated with prescription drug use. Medicaid coverage has effects that are smaller than those for private insurance, but the magnitude is less precisely estimated. These findings imply that if prescription drug coverage were added to Medicare, expected expenditures on drugs would rise by on average $83 for each elderly Medicare beneficiary (in 1990 dollars), although this increase is significant only at the 90% level. If the benefit had been included under Medicare, expected spending on prescription drugs by the elderly would have risen by approximately 20%, or $2.6 billion in 1990.