Table 2.

Net Compensation and Average Spending (in U.S. Dollars, 2011) by Mutually Exclusive Chronic Condition Groups as Defined by CCS Categories.

Group	Net Compensation	SE	Mean Spending	SE	N
Mental illness	−607	66	15,702	70	336,228
Mental illness only	415	65	7,540	66	97,746
Multiple chronic conditions, mental illness	−1,026	88	19,047	94	238,482
Multiple chronic conditions, no mental illness	−32	68	14,570	72	266,614
Diabetes only	678	53	6,674	54	117,014
Heart disease only	−101	65	10,082	67	197,196
Cancer only	217	61	7,742	64	106,284
No chronic condition	273	24	4,384	25	476,664

Notes: Net Compensation is calculated using an OLS risk adjustment regression similar to the Version 21 CMS−HCC risk adjustment formula for the aged, community-dwelling subgroup. Chronic conditions refer to cancer, diabetes, heart disease, and mental illness, as defined by CCS categories; the groups are mutually exclusive. The total N = 1.5 million, drawn as a random sample of age-based Medicare beneficiaries with 12 months of continuous Parts A and B coverage in 2010 and at least one month of coverage in 2011; we exclude beneficiaries with ESRD or residing in an institution.