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

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

Author Info

Yu, W.
Ellis, R.P.
Ash, A.

Additional information is available for the following registered author(s):

Randall P. Ellis

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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Publisher Info
Paper provided by Boston University - Industry Studies Programme in its series Papers with number 88.

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Length: 16 pages
Date of creation: 1998
Date of revision:
Handle: RePEc:fth:bostin:88

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Postal: Boston University, Industry Studies Program; Department of Economics, 270 Bay Road, Boston, Massachusetts 02215.
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Related research
Keywords: INSURANCE ; RISK ; HEALTH;

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Paper
- 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.

Find related papers by 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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