Table 4—

Premium Pass-Through: Impact of $1 Increase in Monthly Payments

	Base payment ($)
	(1)	(2)	(3)
$\text{Δ}b\times 2001$	−0.297	−0.180	−0.308
	(0.054)	(0.093)	(0.055)
$\text{Δ}b\times 2002$	−0.507	−0.369	−0.519
	(0.059)	(0.122)	(0.059)
$\text{Δ}b\times 2003$	−0.448	−0.321	−0.451
	(0.071)	(0.126)	(0.072)
Main effects
County fixed effects	X	X	X
Year fixed effects	X	X	X
Additional controls
Pre-BIPA payment × Year fixed effects		X
Urban × Year fixed effects			X
Pre-BIPA mean of dependent variable	12.58	12.58	12.58
$R^2$	0.71	0.71	0.71

Notes: Table shows coefficients on distance-to-floor × year interactions from difference-in-differences regressions. 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 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. The unit of observation is the county × year, and observations are weighted by the number of beneficiaries in the county. The county-level measures are constructed using plan-level data weighted by plan enrollment. 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. Controls are identical to those in Table 3. All monetary values are inflation adjusted to 2000 using the CPI-U. Robust standard errors clustered at the county level are reported in parentheses.