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Using the Diagnostic Cost Group (DCG) Model to Measure Risk Selection in the Massachusetts State Employee Health Insurance Program

Author

Listed:
  • Wei Yu
  • Randall P. Ellis
  • Arlene Ash

Abstract

The Diagnostic Care Group (DCG) model is applied to data from the Massachusetts Group Insurance Commission from fiscal years 1994-1995 and used to assess the extent of biased selection between one fee-for-service (FFS) plan, one preferred provider organization, and several health maintenance organizations. Average reported covered expenses in the FFS plan are 2.7 time the average of expenses in the managed care plans.
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Suggested Citation

  • Wei Yu & Randall P. Ellis & Arlene Ash, 1998. "Using the Diagnostic Cost Group (DCG) Model to Measure Risk Selection in the Massachusetts State Employee Health Insurance Program," Papers 0088, Boston University - Industry Studies Programme.
    • Handle: RePEc:fth:bostin:0088
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    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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