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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 9: Selection: Impact of $50 Increase in Monthly Payments.

Figure 9:

Notes: Figure shows scaled coefficients on distance-to-floor × year interactions from difference-in-differences regressions. The first-stage results displayed in Table 3 indicate that a $1 change in distance-to-floor translates into a $1 change in the monthly payments, so we can interpret the coefficients as the effect of an increase in monthly payments on a dollar-for-dollar basis. Coefficients are scaled to reflect the impact of a $50 increase in monthly payments. The dependent variables are MA enrollment (panel A), traditional Medicare costs (panel B), and mean demographic risk payments for MA enrollees (panel C). 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 1999 to 2003. This sample includes 2,892 of 15,715 possible county-years and 63 percent of all Medicare beneficiaries. Controls are identical to those in Figure 3. The capped vertical bars show 95 percent confidence intervals calculated using standard errors clustered at the county level. The horizontal dashed lines indicate zero effects.