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. Author manuscript; available in PMC: 2017 May 1.
Published in final edited form as: J Health Econ. 2016 Feb 10;47:1–19. doi: 10.1016/j.jhealeco.2016.01.007

Table 2.

Balance of Power Across 11 Major Diagnostic Categories (MDCs)

Power by MDC
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)
Simulated Payment Scheme Musculoskeletal System and Connective Tissue (MDC 8) Circulatory System (MDC 5) Digestive System (MDC 6) Factors Influencing Health Status (MDC 23) Skin, Subcutaneous Tissue and Breast (MDC 9) Nervous System (MDC 1) Respiratory System (MDC 4)
IP OP IP OP IP OP IP OP IP OP IP OP IP OP
Share of Total Costs 5.64% 13.74% 5.10% 6.87% 2.75% 6.92% 0.57% 6.76% 0.62% 5.80% 1.83% 3.63% 1.78% 2.21%
Concurrent RA 0.92 0.91 0.64 0.53 0.54 0.81 0.70 0.89 0.67 0.81 0.62 0.62 0.33 0.11
ACA Reinsurance 0.65 0.90 0.58 0.85 0.64 0.84 0.45 0.91 0.60 0.74 0.52 0.79 0.60 0.77
Concurrent RA + Reinsurance 0.57 0.81 0.22 0.38 0.18 0.65 0.15 0.81 0.27 0.55 0.14 0.41 −0.06 −0.11
Prospective RA 0.96 0.94 0.90 0.78 0.84 0.89 0.91 0.94 0.83 0.88 0.90 0.78 0.84 0.35
Prospective RA + Reinsurance 0.62 0.84 0.47 0.63 0.50 0.73 0.36 0.86 0.43 0.63 0.42 0.57 0.44 0.12
Power by MDC
(15) (16) (17) (18) (19) (20) (21) (22) (23) (24) (25) (26)
Simulated Payment Scheme Pregnancy, Childbirth, and Puerperium (MDC 14) Kidney and Urinary Tract (MDC 11) Ear, Nose, Mouth, and Throat (MDC 3) Mental Diseases and Disorders (MDC 19) Range Weigthed Average of Squared Deviations
IP OP IP OP IP OP IP OP IP OP IP OP
Share of Total Costs 3.31% 0.83% 0.89% 3.91% 0.21% 4.22% 0.40% 1.53%
Concurrent RA 0.18 0.68 0.70 0.86 0.70 0.91 0.76 0.63 0.18 – 0.92 0.11 – 0.91 0.057 0.034
ACA Reinsurance 0.95 0.97 0.54 0.72 0.72 0.92 0.73 0.94 0.45 – 0.95 0.72 – 0.97 0.017 0.005
Concurrent RA + Reinsurance 0.13 0.65 0.24 0.58 0.41 0.83 0.49 0.57 −0.06 – 0.57 −0.11 – 0.83 0.038 0.047
Prospective RA 1.02 0.81 0.89 0.90 0.87 0.93 0.87 0.69 0.83 – 1.02 0.35 – 0.94 0.003 0.015
Prospective RA + Reinsurance 0.96 0.76 0.42 0.61 0.51 0.86 0.63 0.63 0.36 – 0.96 0.12 – 0.86 0.031 0.025

Notes: Table lists power by Major Diagnostic Category (MDC) for each of the five payment systems listed in rows. Each cell in columns (1) through (22) reports the power determined by a separate simulation in which 10% of the events associated with the indicated MDC are removed at random. For each of these, we report the average from five replications. IP in odd columns indicates inpatient events and OP in even columns indicates outpatient events. Columns (23) and (24) in the bottom panel list the range of power across MDCs. Columns (25) and (26) display the weighted average of squared deviations of power across the 11 MDC categories shown. This weighted average is calculated according to Equation (6) using the shares listed at the top of each column.