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Setting physicians' prices in FFS medicare: an economic perspective.

Dowd B, Feldman R, Nyman J, Town B - Health Care Financ Rev (2006)

Bottom Line: Earlier objectives such as sustainable levels of spending have given way to concerns over the relationship between fees and actual costs, access to care, and the importance of demand and supply in local markets.An important objective in other policy settings is economically efficient distribution of services.We explain the meaning of economic efficiency for Medicare physician prices and explore difficulties one might encounter in pursuing economic efficiency, as well as the cost of not pursuing it.

View Article: PubMed Central - PubMed

Affiliation: Division of Health, School of Public Health, University of Minnesota, Minneapolis, 55455, USA. dowdx001@umn.edu

ABSTRACT
Recent policy discussions by the Medicare Payment Advisory Commission (MedPAC) regarding physician prices in the traditional fee-for-service (FFS) Medicare Program reflect movement toward a market pricing model. Earlier objectives such as sustainable levels of spending have given way to concerns over the relationship between fees and actual costs, access to care, and the importance of demand and supply in local markets. An important objective in other policy settings is economically efficient distribution of services. We explain the meaning of economic efficiency for Medicare physician prices and explore difficulties one might encounter in pursuing economic efficiency, as well as the cost of not pursuing it.

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Competitive Market for Medical Care with Insurance
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Related In: Results  -  Collection


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f2-hcfr-28-2-097: Competitive Market for Medical Care with Insurance

Mentions: Figure 2 illustrates the effect of insurance on the demand for medical care. There are two demand curves: one representing demand with insurance, (DI), and one representing demand without insurance (DNI). DI is the demand curve seen by the providers of services to insured consumers. The DI is nearly vertical reflecting our assumption that most Medicare beneficiaries in FFS Medicare have supplementary Medigap insurance that substantially reduces the consumer's out-of-pocket price so that changing the supply price of services has little effect on demand.


Setting physicians' prices in FFS medicare: an economic perspective.

Dowd B, Feldman R, Nyman J, Town B - Health Care Financ Rev (2006)

Competitive Market for Medical Care with Insurance
© Copyright Policy
Related In: Results  -  Collection

Show All Figures
getmorefigures.php?uid=PMC4194984&req=5

f2-hcfr-28-2-097: Competitive Market for Medical Care with Insurance
Mentions: Figure 2 illustrates the effect of insurance on the demand for medical care. There are two demand curves: one representing demand with insurance, (DI), and one representing demand without insurance (DNI). DI is the demand curve seen by the providers of services to insured consumers. The DI is nearly vertical reflecting our assumption that most Medicare beneficiaries in FFS Medicare have supplementary Medigap insurance that substantially reduces the consumer's out-of-pocket price so that changing the supply price of services has little effect on demand.

Bottom Line: Earlier objectives such as sustainable levels of spending have given way to concerns over the relationship between fees and actual costs, access to care, and the importance of demand and supply in local markets.An important objective in other policy settings is economically efficient distribution of services.We explain the meaning of economic efficiency for Medicare physician prices and explore difficulties one might encounter in pursuing economic efficiency, as well as the cost of not pursuing it.

View Article: PubMed Central - PubMed

Affiliation: Division of Health, School of Public Health, University of Minnesota, Minneapolis, 55455, USA. dowdx001@umn.edu

ABSTRACT
Recent policy discussions by the Medicare Payment Advisory Commission (MedPAC) regarding physician prices in the traditional fee-for-service (FFS) Medicare Program reflect movement toward a market pricing model. Earlier objectives such as sustainable levels of spending have given way to concerns over the relationship between fees and actual costs, access to care, and the importance of demand and supply in local markets. An important objective in other policy settings is economically efficient distribution of services. We explain the meaning of economic efficiency for Medicare physician prices and explore difficulties one might encounter in pursuing economic efficiency, as well as the cost of not pursuing it.

Show MeSH