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Stephen
T. Parente, PhD
Assistant Professor, Department Of Healthcare Management, University
Of Minnesota
Evaluation Of The Effect Of A Consumer Driven Health Plan
On Medical Care Expenditures And Utilization
May 7, 2004
12:00 - 1:30 PM
Colonial Penn Center Auditorium
Abstract
Paper
Slides
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Biosketch:
Stephen T. Parente,
Ph.D., M.P.H., M.S. is an Assistant Professor in the Carlson School of
Management at the University of Minnesota where he specializes in the
fields of health information technology and health economics. In his experience
directing empirical analyses he has been acknowledged as a national expert
on using administrative databases, particularly Medicare and private insurer,
for health services research. He is currently directing a multi-site study
evaluating the impact of Consumer-Driven Health Plans in six employers
compared to their other health plan choices. Dr. Parente teaches graduate
level courses in health information technology, e-commerce and technology
evaluation. He has a doctorate from the Johns Hopkins University, and
both a Masters of Science in Public Policy Analysis and a Masters of Public
Health from the University of Rochester.
Abstract:
Objective: To compare medical care costs and utilization in a
Lnciimer directed health plan (CDHP) to other health insurance plans.
Study Design: We examine claims and employee demographic data
from one large employer that adopted a CDHP in 2001. A quasi-experimental
pre/post design is used to assign employees to three cohorts: 1) enrolled
in an HMO from 2000 to 2002, 2) enrolled in a PPO from 2000 to 2002,
or 3) enrolled in a CDHP in 2001 and 2002, after previously enrolling
in either an HMO or PPO in 2000. Using this approach we estimate a difference-in-difference
regression model for expenditure and utilization measures to identify
the impact of CDHP.
Principal Findings: By 2002, the CDHP cohort experienced lower
total expenditures than the PPO cohort but higher expenditures than
the HMO cohort. Physician visits and pharmaceutical use and costs were
lower in the CDHP cohort compared to the other groups. Hospital costs
and admission rates, for CDHP enrollees, as well as total physician
expenditures, were significantly higher than for enrollees in the HMO
and PPO plans.
Conclusions: An early evaluation of CDHP expenditure and utilization
reveals that the new health plan is a viable alternative to existing
health plan designs. Enrollees in the CDHP have lower total expenditures
than PPO enrollees, but higher utilization of resource-intensive hospital
admissions after an initially favorable selection.
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