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. Author manuscript; available in PMC: 2020 Aug 21.
Published in final edited form as: J Health Econ. 2019 May 24;66:195–207. doi: 10.1016/j.jhealeco.2019.05.005

Table 5.

Reducing Disparities by Neighborhood Income – Comparing Group Payments and Spending (in U.S. Dollars, 2011).

Income Group Base OLS Data Transformation Low-Income Indicator Combination Mean Spending
(1) (2) (3) (4) (5)
R2 11.38 11.33 11.38 11.27
Binary
 Low (Quintiles 1–3) 10,055 10,080 9,928 10,922 9,928
 High (Quintiles 4–5) 9,660 9,623 9,852 9,851 9,852
Quintiles
 1st 10,195 10,250 10,075 11,080 10,235
 2nd 10,063 10,084 9,936 10,928 9,847
 3rd 9,908 9,906 9,777 10,758 9,702
 4th 9,773 9,751 9,964 9,975 9,726
 5th 9,548 9,496 9,735 9,727 9,977

Notes: Column (1) contains the simplified CMS−HCC v21 risk adjustment regression. (2) contains the regression where we intervene to increase spending by 10% for individuals in the low-income group. (3) is the baseline OLS regression with an indicator the low-income group. (4) contains the baseline OLS regression with an indicator for the low-income group, combined with transforming the data to increase spending by 10% for the low-income group. (5) shows mean group-level spending.