Variation in Health Care Spending: Target Decision Making, Not Geography (2013)

Chapter: Appendix D: Regression Model Specifications with "Clusters" of Predictors

Previous Chapter: Appendix C: Summary of Empirical Modeling Methodology
Suggested Citation: "Appendix D: Regression Model Specifications with "Clusters" of Predictors." Institute of Medicine. 2013. Variation in Health Care Spending: Target Decision Making, Not Geography. Washington, DC: The National Academies Press. doi: 10.17226/18393.

Appendix D

Regression Model Specifications with “Clusters” of Predictors

Cluster 1: Partial-year enrollment (PYE), year, pharmacy benefit, age, sex, age–sex interaction (all subcontractors)

Cluster 2: Health status (All subcontractors) – BASELINE MODEL

a) PYE, year, pharmacy benefit, age, sex, age–sex interaction

b) Health status

Cluster 3: Race (All subcontractors)

a) PYE, year, pharmacy benefit, age, sex, age–sex interaction

b) Race

Cluster 4: Income (All subcontractors)

a) PYE, year, pharmacy benefit, age, sex, age–sex interaction

b) Income

Cluster 5: All common beneficiary independent variables (all subcontractors)

a) PYE, year, pharmacy benefit, age, sex, age–sex interaction

b) Health status

c) Race

d) Income

Suggested Citation: "Appendix D: Regression Model Specifications with "Clusters" of Predictors." Institute of Medicine. 2013. Variation in Health Care Spending: Target Decision Making, Not Geography. Washington, DC: The National Academies Press. doi: 10.17226/18393.

Cluster 6: Employer/insurance (Lewin and Harvard only)

a) PYE, year, pharmacy benefit, age, sex, age–sex interaction

b) Benefit generosity and payer/plan type (Harvard and Lewin only)

c) Data source (Harvard only)

d) Plan size (Lewin only)

Cluster 7: Market (all subcontractors)

a) PYE, year, pharmacy benefit, age, sex, age–sex interaction

b) Access to care, payer mix, hospital competition, supply of medical services, % population uninsured, malpractice environmental risk (all)

c) Physician competition (Harvard and Acumen)

d) Health professional mix (Lewin and Acumen)

e) Percentage of Medicare beneficiaries with supplemental insurance

f) MA/Medicaid penetration (Acumen only)

Cluster 8: Kitchen sink variables (Subcontractors included all independent variables)

All subcontractors

a) PYE, year, pharmacy benefit, age, sex, age–sex interaction

b) Race

c) Income

d) Health status and comorbidity adjuster

e) Access to care

f) Payer mix

g) Hospital competition

h) Supply of medical services

i) % population uninsured

j) Malpractice environment risk

Harvard additionally adjusted for:

•   Health
behavior

•   Data source

•   Payer/plan type

•   Benefit generosity

•   Physician composition

Acumen additionally adjusted for:

•   Medicare and Medicaid dual eligibility status

•   Supplemental Medicare insurance

•   Fee-for-service or Medicare Advantage

•   Part D enrollment

Suggested Citation: "Appendix D: Regression Model Specifications with "Clusters" of Predictors." Institute of Medicine. 2013. Variation in Health Care Spending: Target Decision Making, Not Geography. Washington, DC: The National Academies Press. doi: 10.17226/18393.

•   Percentage of Medicare beneficiaries with supplemental insurance

•   MA/Medicaid penetration

•   Physician composition

•   Health professional mix

Lewin additionally adjusted for:

•   Payer/plan type

•   Benefit generosity

•   Plan size

•   Health professional mix

Cluster 9: All common independent variables only (all subcontractors)

a) PYE, year, pharmacy benefit, age, sex, age–sex interaction

b) Race

c) Income

d) Health status and comorbidity adjuster

e) Access to care

f) Payer mix

g) Hospital competition

h) Supply of medical services

i) % population uninsured

j) Malpractice environment risk

Cluster 10: Cluster 1 and Medicare only IVs (Acumen only)

a) PYE, year, pharmacy benefit, age, sex, age–sex interaction

b) Medicare and Medicaid dual eligibility status

c) Supplemental Medicare insurance

d) Part D enrollment

e) Fee for service or Medicare Advantage

Suggested Citation: "Appendix D: Regression Model Specifications with "Clusters" of Predictors." Institute of Medicine. 2013. Variation in Health Care Spending: Target Decision Making, Not Geography. Washington, DC: The National Academies Press. doi: 10.17226/18393.

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Suggested Citation: "Appendix D: Regression Model Specifications with "Clusters" of Predictors." Institute of Medicine. 2013. Variation in Health Care Spending: Target Decision Making, Not Geography. Washington, DC: The National Academies Press. doi: 10.17226/18393.
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Suggested Citation: "Appendix D: Regression Model Specifications with "Clusters" of Predictors." Institute of Medicine. 2013. Variation in Health Care Spending: Target Decision Making, Not Geography. Washington, DC: The National Academies Press. doi: 10.17226/18393.
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Suggested Citation: "Appendix D: Regression Model Specifications with "Clusters" of Predictors." Institute of Medicine. 2013. Variation in Health Care Spending: Target Decision Making, Not Geography. Washington, DC: The National Academies Press. doi: 10.17226/18393.
Page 139
Suggested Citation: "Appendix D: Regression Model Specifications with "Clusters" of Predictors." Institute of Medicine. 2013. Variation in Health Care Spending: Target Decision Making, Not Geography. Washington, DC: The National Academies Press. doi: 10.17226/18393.
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Next Chapter: Appendix E: Harvard University Price Adjustment Memorandums
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