Related Experiment Videos
Do physicians cost shift?
T Rice1, S Stearns, S DesHarnais
1Department of Health Services, University of California, Los Angeles, School of Public Health, USA.
Health Affairs (Project Hope)
|January 1, 1996
Summary
Physicians did not increase charges to privately insured patients when Medicare payment rates were reduced. This study found no evidence of cost shifting from Medicare to private insurance following payment cuts.
Area of Science:
- Health Economics
- Medical Policy
Background:
- Medicare payment rates for procedures were reduced by up to 30 percent in 1989-1990.
- Physician cost shifting is a potential response to reduced Medicare reimbursement.
Purpose of the Study:
- To investigate if physicians increase charges to privately insured patients following Medicare payment reductions.
- To determine the presence and extent of cost shifting in response to Medicare policy changes.
Main Methods:
- Analysis of physician billing data in response to Medicare payment changes.
- Examining the correlation between Medicare rate reductions and charges to privately insured patients.
Main Results:
- No statistically significant evidence was found to support cost shifting.
- Physician charges to privately insured patients remained consistent despite Medicare payment reductions.
Conclusions:
- Physicians did not engage in cost shifting to compensate for Medicare payment reductions.
- Medicare payment policies may not directly influence physician pricing for privately insured individuals.