【AEW webinar】Getting the Price Right? The Impact of Competitive Bidding in the Medicare Program

  • 研討會日期 : 2021-05-13
  • 時間 : 08:30
  • 主講人 : Professor Mark Duggan
  • 地點 : online
  • 演講者簡介 : Professor Duggan received his Ph.D. in Economics from Harvard University in 1999. He is the Trione Director of the Stanford Institute for Economic Policy Research (SIEPR) and The Wayne and Jodi Cooperman Professor of Economics at Stanford University. His research focuses on the health care sector and the effects of government expenditure programs such as Medicare, Medicaid, and Social Security.
  • 演講摘要 : We study Medicare's competitive bidding program (CBP) for durable medical equipment (DME). We exploit Medicare claims data to examine both prices and utilization, focusing on continuous positive airway pressure (CPAP) devices to treat sleep apnea. We find that spending falls by 47.2% percent after a highly imperfect bidding mechanism is introduced. The effect is almost entirely driven by a 44.8% price reduction, though quantities also fall by 4.3%. To disentangle supply and demand, we leverage differential cost sharing across Medicare recipients. We measure a demand elasticity of -0.272 and find that quantity reductions are concentrated among less clinically appropriate groups.