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Physician payments under health care reform

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  • Dunn, Abe
  • Shapiro, Adam Hale

Abstract

This study examines the impact of major health insurance reform on payments made in the health care sector. We study the prices of services paid to physicians in the privately insured market during the Massachusetts health care reform. The reform increased the number of insured individuals as well as introduced an online marketplace where insurers compete. We estimate that, over the reform period, physician payments increased at least 11 percentage points relative to control areas. Payment increases began around the time legislation passed the House and Senate—the period in which their was a high probability of the bill eventually becoming law. This result is consistent with fixed-duration payment contracts being negotiated in anticipation of future demand and competition.

Suggested Citation

  • Dunn, Abe & Shapiro, Adam Hale, 2015. "Physician payments under health care reform," Journal of Health Economics, Elsevier, vol. 39(C), pages 89-105.
  • Handle: RePEc:eee:jhecon:v:39:y:2015:i:c:p:89-105
    DOI: 10.1016/j.jhealeco.2014.09.004
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    Cited by:

    1. Trish, Erin E. & Herring, Bradley J., 2015. "How do health insurer market concentration and bargaining power with hospitals affect health insurance premiums?," Journal of Health Economics, Elsevier, vol. 42(C), pages 104-114.
    2. Abe Dunn & Adam Hale Shapiro, 2015. "Does Medicare Part D Save Lives?," BEA Working Papers 0119, Bureau of Economic Analysis.
    3. Clemens, Jeffrey & Gottlieb, Joshua D. & Shapiro, Adam Hale, 2016. "Medicare payment cuts continue to restrain inflation," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.
    4. Dunn, Abe & Shapiro, Adam Hale, 2015. "Physician competition and the provision of care: evidence from heart attacks," Working Paper Series 2015-7, Federal Reserve Bank of San Francisco.
    5. Shapiro, Adam Hale, 2015. "Did Massachusetts health-care reform affect prices?," FRBSF Economic Letter, Federal Reserve Bank of San Francisco.

    More about this item

    Keywords

    Massachusetts health care reform; Physician payments;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L78 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Government Policy

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