Exhibit A2. Pooled OLS Model Regression Results.

Dependent Variable: Natural log of per capita total personal health care spending by state, adjusted by the PCE deflator
Independent Variables	Coefficient (Standard Error)
Intercept	1.04683 (0.25532)	**
Natural log of per capita income by state, adjusted by the PCE deflator	0.59849 (0.02498)	**
Community hospital beds per 1,000 population by state	0.01900 (0.00378)	**
Share of state population associated with women of childbearing age (20–44)	0.02887 (0.00619)	**
Share of state population that is African American	-0.00081 (0.00036587)	**
Share of state population age 65 or older	0.02914 (0.00198)	**
Bad health index by state (smoking rate*obesity rate)	0.02305 (0.0028)	**
Share of state population that is uninsured	-0.00128 (0.0008)	*
HMO penetration by state	-0.00127 (0.0002966)	**
Time Trend	0.02744 (0.00167)	**
N = 950 Adjusted R-squared: 0.8897

^**denotes significance at the 95 level

^*denotes significance at the 90 level

SOURCE: Centers for Medicare & Medicaid Services, Office of the Actuary.