Table 5. Comparison Between Models of Predicted and Observed Cost Ratios for Biased Subgroups.
| Model Type | Heart Condition | Diabetes | Arthritis | Stroke | Help With Walking | Help Managing Money | Hospitalized in 1991 | High Part B Costs1 | Health Limits Social Activities |
|---|---|---|---|---|---|---|---|---|---|
| Demographic | 1.00 | 0.97 | 0.99 | 1.04 | 1.09 | 1.17 | 1.03 | 1.01 | 1.09 |
| Health | 1.36 | 1.47 | 1.08 | 1.37 | 1.53 | 1.55 | 1.30 | 1.34 | 1.62 |
| ADLs | 1.05 | 1.07 | 1.01 | 1.35 | 1.76 | 1.84 | 1.20 | 1.23 | 1.69 |
| Disability | 1.14 | 1.21 | 1.07 | 1.53 | 2.05 | 2.12 | 1.33 | 1.39 | 2.06 |
| Comprehensive | 1.36 | 1.47 | 1.09 | 1.62 | 2.09 | 2.15 | 1.43 | 1.51 | 2.13 |
| Prior-Use | 1.37 | 1.47 | 1.10 | 1.66 | 2.10 | 2.10 | 2.18 | 2.80 | 2.37 |
| Observed | 1.36 | 1.47 | 1.08 | 1.57 | 2.03 | 2.07 | 2.08 | 2.63 | 2.41 |
| Number of Observations | 3,018 | 1,217 | 4,038 | 813 | 991 | 713 | 911 | 1,653 | 695 |
1
Part B costs in 1991 were greater than $1,864, with no inpatient costs.
NOTE: ADL is activity of daily living.
SOURCE: Health Care Financing Administration, Office of the Actuary: Data from the Medicare Current Beneficiary Survey, 1991-92.