Table 3—

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

	Base payment ($)
	(1)	(2)	(3)
$\text{Δ}b\times 2001$	0.992	0.992	0.992
	(0.003)	(0.004)	(0.003)
$\text{Δ}b\times 2002$	0.990	0.999	0.987
	(0.005)	(0.005)	(0.005)
$\text{Δ}b\times 2003$	0.994	1.002	0.990
	(0.004)	(0.005)	(0.005)
Main effects
County FE	X	X	X
Year FE	X	X	X
Additional controls
Pre-BIPA payment × year fixed effects		X
Urban × year fixed effects			X
Pre-BIPA mean of dependent variable	510.84	510.84	510.84
$R^2$	0.9998	0.9999	0.9999

Notes: Table shows coefficients on distance-to-floor × year interactions from difference-in-differences regressions with monthly base payments as the dependent variable. Although the estimation includes distance-to-floor interactions for all the years in our sample, we display coefficients for the post-reform years (2001–2003) above for brevity. 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. Year 2000, which is the year prior to BIPA implementation, is the omitted category. Additional controls in column 2 include quartiles of year 2000 county base payments interacted with year indicators and in column 3 include an indicator for urban status interacted with year indicators. Flexible controls for the 1998 payment floor introduction and 2000 blended payment increase are included in all specifications. All monetary values are inflation adjusted to 2000 using the CPI-U. Robust standard errors clustered at the county level are reported in parentheses.