Appendix Table 1.
Effect of benchmark on bids, market-level longitudinal model (HMO and local PPO plans).*
| Variables | (1) | (2) | (3) | (4) | (5) | (6) | (7) | (8) | (9) |
|---|---|---|---|---|---|---|---|---|---|
| Base IV | No county risk | No plan risk | Linear year | Unweighted | Large markets | Interaction | HHI | HHI* bench | |
| Benchmark | 0.491*** (0.0479) | 0.516*** (0.0496) | 0.493*** (0.0484) | 0.434*** (0.0475) | 0.482*** (0.0622) | 0.504*** (0.0484) | 0.598*** (0.132) | 0.471*** (0.0463) | 0.547*** (0.0636) |
| Risk (FFS) | −101.2** (41.06) | −100.7** (41.63) | −123.9*** (38.37) | −72.57 (46.46) | −105.3*** (30.17) | −103.3** (41.97) | −91.99** (38.95) | −87.52** (36.81) | |
| Risk (Plan) | 6.153 (21.61) | 3.192 (22.85) | 14.38 (22.97) | 1.211 (22.49) | 3.348 (22.16) | 2.016 (22.41) | 6.320 (21.24) | 9.456 (20.52) | |
| FFS cost | 0.0994** (0.0491) | −0.00817 (0.0171) | 0.0994** (0.0490) | 0.103** (0.0461) | 0.105* (0.0585) | 0.0996** (0.0408) | 0.103** (0.0505) | 0.0922* (0.0472) | 0.0858* (0.0445) |
| Pop (1000s) | 0.00944 (0.0117) | 0.00310 (0.0127) | 0.00920 (0.0119) | 0.0427*** (0.0129) | 0.0578 (0.0354) | 0.00418 (0.0122) | 0.0134 (0.0123) | −0.00730 (0.0128) | −0.0131 (0.0127) |
| Insurers | −1.399*** (0.168) | −1.208*** (0.164) | −1.385*** (0.169) | −1.953*** (0.169) | −1.914*** (0.376) | −1.312*** (0.172) | 2.175 (3.369) | −1.225*** (0.180) | −1.294*** (0.193) |
| Insurers* Bench | −0.00414 (0.00397) | ||||||||
| HHI (beds) | −0.00779** (0.00304) | 0.0312* (0.0182) | |||||||
| HHI* Bench | −4.55e-05** (1.98e-05) | ||||||||
| Market FE | Y | Y | Y | Y | Y | Y | Y | Y | Y |
| Year FE | Y | Y | Y | Y | Y | Y | Y | Y | |
| Year (linear) | 8.057*** (1.084) | ||||||||
| Observations | 8,731 | 8,731 | 8,731 | 8,731 | 8,731 | 5,795 | 8,731 | 8,731 | 8,731 |
| Partial R2 | 0.408 | 0.398 | 0.408 | 0.360 | 0.369 | 0.422 | 0.407 | 0.416 | 0.420 |
| Markets | 2,058 | 2,058 | 2,058 | 2,058 | 2,058 | 1,357 | 2,058 | 2,058 | 2,058 |
Robust standard errors in parentheses clustered by state.
***
p<0.01,
**
p<0.05,
*
p<0.1
*
Note that the number of markets increases as compared with the HMO sample. This is because in many (rural) counties, there can be a lack of HMO plans. Local PPOs and often PFFS plans are serving such counties.