Medicare Quality: Differences Across the Nation
Moore, Christina Lennell
Wise, Andrew W.
Medicare costs are predicted to continue increasing at an unsustainable rate in the future unless the financial structure is changed. The purpose of this study is to holistically examine the delivery of Medicare by studying the number of services, enrollees' demographics, and reimbursements in the delivery of Medicare across the United States. Specifically, I will investigate how the number of Medicare services differs across the country in relation to Medicare reimbursement rates and the makeup of each county. Cutting the physician reimbursement rates remains an ineffective solution as the demographics of the county causes both the average number of services and the total reimbursement for Medicare to vary nationwide. This paper suggests endogeneity exists when cutting the Medicare reimbursement rate and does not lead to a changed behavior in savings. In essence, if cutting rates merely drives up the number of services and possibly decreases quality, then cost containment is not accomplished and all are worse off.
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