Exhibit 1.

Characteristics of Study Population by Level of Exposure to SNF Cost Sharing

	Exposure to cost sharing after benefit day 20
	More exposed to cost sharing				Less exposed to cost sharing
	Full exposurea		High exposureb		Low exposurec
n (SNF episodes)	202,342		292,715		1,221,333
Mean age,d SD	76.2	12.0	80.8	12.3	81.9	7.5
Male, %d	30.8		24.7		42.9
Race, %d
White, non-Hispanic	78.2		80.9		96.2
Black, non-Hispanic	15.7		13.6		1.3
Hispanic	4.5		3.6		1.0
Other	1.7		1.9		1.5
Disabled, %d,e	37.0		27.8		0.0h
Mean chronic condition count,f SD	8.9	3.7	7.2	3.9	8.8	3.6
Median household income in ZIP code tabulation area, $g SD	29,600	10,000	31,200	10,700	36,800	12,900
Percent living alone in ZIP code tabulation area, %g	28.2		29.3		28.0
Highest educational attainment in ZIP code tabulation area, %g
Percent of residents with a college degree	14.6		15.4		19.6
Percent of residents with a high school degree	60.3		62.9		69.4
Percent of residents in poverty in ZIP code tabulation area, %g	11.8		10.5		7.63

Source: Authors’ calculations using fee-for-service Medicare claims data

Notes:

SNF = skilled nursing facility

SD = standard deviation

^aMedicare Savings Program enrollees exposed to cost sharing

^bBeneficiaries unlikely to have supplemental coverage

^cBeneficiaries likely to have employer-sponsored supplemental or Medigap coverage

^dPatient characteristics obtained from Medicare enrollment file corresponding to year of SNF episode.

^eDisability status determined using beneficiaries’ original reason for Medicare eligibility (includes patients who became eligible through end-stage renal disease).

^fCount of 27 conditions from the Chronic Conditions Data Warehouse (CCW)

^gCharacteristic in patients’ residential ZIP code tabulation areas using American Community Survey data

^hDisabled individuals were excluded from the Low-exposure group to identify patients with a high probability of having supplemental coverage that covers SNF cost sharing. See appendix for additional details.