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. Author manuscript; available in PMC: 2024 Jan 11.
Published in final edited form as: Am Econ Rev. 2018 Aug;108(8):2048–2087.

Figure 3. First-Stage Effect on Base Payments: Impact of $1 Increase in Distance-to-Floor.

Figure 3.

Notes: Figure shows coefficients on distance-to-the-floor × year interactions from difference-in-differences regressions with the monthly base payments as the dependent variable. The unit of observation is the county × year, and observations are weighted by the number of beneficiaries in the county. The sample is the unbalanced panel of county-years with at least one MA plan over years 1997 to 2003. This sample includes 4,262 of 22,001 possible county-years and 64 percent of all Medicare beneficiary-years. Controls include year and county fixed effects as well as flexible controls for the 1998 payment floor introduction and the blended payment increase in 2000. The capped vertical bars show 95 percent confidence intervals calculated using standard errors clustered at the county level. Year 2000, which is the year prior to BIPA implementation, is the omitted category and denoted with a vertical dashed line. Horizontal dashed lines are plotted at the reference values of 0 and 1.