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. Author manuscript; available in PMC: 2019 Sep 1.
Published in final edited form as: J Health Econ. 2018 Jul 23;61:93–110. doi: 10.1016/j.jhealeco.2018.07.001
Risk adjustor variables Population frequency Base model Constrained model

Intercept 100.00% 203 −790

Male. 0 0.55% 3716 5898
Male. 1–4 2.27% 425 −85
Male. 5–9 2.96% 289 −72
Male. 10–14 3.11% 172 410
Male. 15–17 1.81% 192 629
Male. 18–24 4.29% −15 −38
Male. 25–29 2.94% −42 −58
Male. 30–34 2.95% −39 −34
Male. 35–39 3.08% 0 0
Male. 40–44 3.83% 75 114
Male. 45–49 3.89% 187 263
Male. 50–54 3.67% 333 499
Male. 55–59 3.33% 584 936
Male. 60–64 3.19% 813 1364
Male. 65–69 2.73% 1278 1643
Male. 70–74 1.90% 1661 2041
Male. 75–79 1.37% 2104 2401
Male. 80–84 0.89% 2248 2351
Male. 85–89 0.43% 2364 2105
Male. 90+ 0.15% 2542 1433
Female. 0 0.52% 3069 5207
Female. 1–4 2.17% 199 −154
Female. 5–9 2.82% 153 158
Female. 10–14 2.97% 142 514
Female. 15–17 1.72% 324 416
Female. 18–24 4.18% 305 145
Female. 25–29 2.96% 774 985
Female. 30–34 2.99% 935 1549
Female. 35–39 3.14% 546 977
Female. 40–44 3.83% 309 439
Female. 45–49 3.86% 352 387
Female. 50–54 3.68% 463 578
Female. 55–59 3.34% 573 773
Female. 60–64 3.18% 733 1110
Female. 65–69 2.78% 1043 1162
Female. 70–74 2.07% 1362 1534
Female. 75–79 1.71% 1703 2019
Female. 80–84 1.37% 1955 2296
Female. 85–89 0.89% 2165 2341
Female. 90+ 0.48% 2125 1181

No PCG a 82.03% 201 637
Glaucoma 0.85% 279 346
Thyroid disorders 1.64% 83 −181
Mental disorders 0.53% 95 1243
Depressive disorder 2.67% 184 −636
Peripheral neuropathy 0.38% 1159 157
Hypercholesterolemia 5.30% 178 −620
Diabetes II without hypertension 0.63% 531 −1868
COPD / severe asthma 1.16% 1565 1165
Asthma 2.16% 573 643
Diabetes II with hypertension 1.40% 845 −1511
Epilepsy 0.48% 834 −245
Crohn’s disease / Colitis ulcerosa 0.20% 818 2881
Heart diseases 2.21% 1500 1242
Rheumatoid arthritis (TNF-α) 0.19% 14164 14623
Rheumatoid arthritis (other) 0.32% 1478 2813
Parkinson’s disease 0.14% 2176 3527
Diabetes type I 1.29% 1361 649
Transplantations 0.15% 89 6361
Cystic fibrosis / Pancreatic disease 0.04% 3021 15999
Disorders of brain/ spinal cord 0.07% 1511 4128
Cancer 0.09% 3697 9279
Hormone-sensitive tumors 0.35% −712 −2226
HIV/AIDS 0.08% 2826 29936
Kidney disorders 0.07% 7201 15969

No DCG b 91.00% 0 0
DCG1 0.67% 391 400
DCG2 1.49% 560 750
DCG3 1.11% 635 659
DCG4 1.80% 1011 3436
DCG5 1.16% 1618 2657
DCG6 1.26% 2002 3813
DCG7 0.55% 3225 9061
DCG8 0.12% 3989 9721
DCG9 0.30% 3847 6950
DCG10 0.33% 7307 14332
DCG11 0.04% 8722 14286
DCG12 0.07% 8608 20788
DCG13 0.04% 15876 32097
DCG14 0.04% 65152 63374
DCG15 0.01% 51005 140811

ZIP-code cluster 1 9.91% 169 479
ZIP-code cluster 2 9.88% 124 351
ZIP-code cluster 3 9.97% 101 254
ZIP-code cluster 4 9.86% 84 215
ZIP-code cluster 5 10.01% 68 203
ZIP-code cluster 6 9.91% 64 171
ZIP-code cluster 7 9.98% 50 129
ZIP-code cluster 8 9.98% 38 78
ZIP-code cluster 9 10.17% 24 44
ZIP-code cluster 10 10.32% 0 0

Age = 0–17 or 65+ 37.67% 0 0
Disability beneficiaries. 15–34 0.91% 647 −969
Disability beneficiaries. 34–44 0.77% 803 −50
Disability beneficiaries. 45–54 1.30% 720 88
Disability beneficiaries. 55–64 2.02% 596 362
General beneficiaries. 15–34 0.57% 267 −260
General beneficiaries. 34–44 0.55% 353 −214
General beneficiaries. 45–54 0.60% 412 43
General beneficiaries. 55–64 0.48% 368 327
Students. 18–34 3.20% −238 −233
Self-employed. 15–34 0.78% −116 −155
Self-employed. 34–44 1.27% −111 −112
Self-employed. 45–54 1.32% −146 −156
Self-employed. 55–64 0.79% −152 −148
Other. 15–34 14.84% 0 0
Other. 34–44 11.29% 0 0
Other. 45–54 11.88% 0 0
Other. 55–64 9.75% 0 0

No MYHCG c 94.24% 0 0
2x costs in top-10% 1.01% 2661 6082
3x costs in top-15% 2.30% 2318 3155
3x costs in top-10% 1.05% 3680 4370
3x costs in top-7% 0.78% 5692 6085
3x costs in top-4% 0.46% 9661 9066
3x costs in top-1.5% 0.15% 25836 37142

No DMECG d 99.17% 0 0
Insulin pumps 0.12% 422 −3319
Catheters 0.39% 1308 −1212
Stoma 0.31% 1801 −929
Trachea-stoma 0.02% 6546 2464

Address >15 residents. 0–17 0.06% 244 −1059
Address >15 residents. 18–64 0.38% 169 480
Address >15 residents. 65+ 0.72% 321 5820
Income deciles 1–3. 0–17 6.25% 27 −110
Income deciles 1–3. 18–64 18.57% 53 12
Income deciles 1–3. 65+ 4.81% 200 −269
Income deciles 4–7. 0–17 8.34% −5 −115
Income deciles 4–7. 18–64 24.79% 48 23
Income deciles 4–7. 65+ 6.41% 44 −166
Income deciles. 8–10. 0–17 6.25% 0 0
Income deciles. 8–10. 18–64 18.59% 0 0
Income deciles. 8–10. 65+ 4.81% 0 0

65-. no morbidity e 70.38% 0 0
65-. morbidity 12.86% 618 1541
65+. no morbidity 6.89% 0 0
65+. morbidity 9.88% 642 2272
a

PCG = Pharmacy-based Cost Group

b

DCG = Diagnostic-based Cost Group

c

MYHCG = Multiple-Year High Cost Group

d

DMECG = Durable Medical Equipment Cost Group

e

Morbidity is operationalized as having at least one PCG, DCG, MYHCG or DMECG.