Table 2. Percentage of maximum explained variation in health care expenditures yielded by alternative specifications, by type of expenditure.
| Dependent variable | Total expenditures | Inpatient expenditures | Outpatient expenditures |
|---|---|---|---|
|
| |||
| Percent | |||
| Plan only | 0.25 | 0.05 | 1.64 |
| Between-person variance as a percent of total variance (maximum R2) | 14.5 | 8.0 | 48.2 |
| AAPCC: Age, sex, site, Aid to Families with Dependent Children status | 11 | 9 | 15 |
| AAPCC plus dichotomous physiologic health | 26 | 25 | 28 |
| AAPCC plus dichotomous physiologic health based on claims | 31 | 27 | 26 |
| AAPCC plus continuous physiologic health | 29 | 32 | 27 |
| AAPCC plus subjective health | 19 | 15 | 23 |
| AAPCC plus subjective health and continuous physiologic health | 32 | 35 | 30 |
| AAPCC plus prior-year use | 44 | 35 | 44 |
| AAPCC plus dichotomous physiologic health and prior-year use | 55 | 51 | 51 |
| AAPCC plus continuous physiologic health and prior-year use | 60 | 59 | 51 |
| All variables | 62 | 62 | 52 |
NOTES: Between-plan variation removed except from plan-only row. Denominator of percentage is value in second (maximum R2) row. AAPCC is adjusted average per capita cost.
SOURCE: Data from the RAND Health Insurance Experiment.