{"id":312353,"date":"2010-02-12T10:14:58","date_gmt":"2010-02-12T15:14:58","guid":{"rendered":"tag:business.theatlantic.com,2010:\/\/3.35861"},"modified":"2010-02-12T11:48:35","modified_gmt":"2010-02-12T16:48:35","slug":"more-on-medicare-mortality","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/312353","title":{"rendered":"More on Medicare Mortality"},"content":{"rendered":"<p>You can expect that I&#8217;ll be blogging quite a bit about this topic over the next few days.&nbsp; A reader in Tyler Cowen&#8217;s comments offers <a href=\"https:\/\/www.mitpressjournals.org\/action\/ecommart\/1\/post?contractId=150\">this 2009 study<\/a>:<\/p>\n<blockquote><p>Health insurance characteristics shift at age 65 as most people become eligi-<br \/>\nble for Medicare. We measure the impacts of these changes on patients who are<br \/>\nadmitted to hospitals through emergency departments for conditions with similar<br \/>\nadmission rates on weekdays and weekends. The age pro\ufb01les of admissions and<br \/>\ncomorbidities for these patients are smooth at age 65, suggesting that the severity of illness is similar on either side of the Medicare threshold. In contrast, the<br \/>\nnumber of procedures performed in hospitals and total list charges exhibit small<br \/>\nbut statistically signi\ufb01cant discontinuities, implying that patients over 65 receive<br \/>\nmore services. We estimate a nearly 1-percentage-point drop in 7-day mortality<br \/>\nfor patients at age 65, equivalent to a 20% reduction in deaths for this severely ill<br \/>\npatient group. The mortality gap persists for at least 9 months after admission<\/p><\/blockquote>\n<p>I referred to three earlier studies, including one by Card, <a href=\"http:\/\/papers.ssrn.com\/sol3\/papers.cfm?abstract_id=1142030\">as<br \/>\nsurveyed by Levy and Meltzer<\/a>:<\/p>\n<blockquote><p>Card et al. use a<br \/>\nregression discontinuity approach to estimate the impact of Medicare<br \/>\ncoverage on mortality.&nbsp; The basic idea is that if health insurance<br \/>\nsignificantly affects mortality in the short run, the dramatic increase<br \/>\nin health insurance coverage at age 65 as a result of Medicare should<br \/>\ntranslate into a reduction in mortality at age 65 relative to the<br \/>\noverall trend by age.&nbsp; In fact, the data show no such discontinuity:&nbsp;<br \/>\nmortality changes smoothly with age.&nbsp; Card et al. do find discrete,<br \/>\nsignificant increases in consumption of medical care.&nbsp; They also noted<br \/>\nsome improvements in self-reported health at age 65, although many of<br \/>\nthese effects are imprecisely estimated.&nbsp; One important exception is the<br \/>\n result for Hispanics and low-income minorities, both of whome see<br \/>\nsignificant increases in the probability of reporting good or better<br \/>\nhealth at age 65.<\/p>\n<p>Polsky et al. take a different approach to<br \/>\nestimating the impact of Medicare on health.&nbsp; They analyze changes in<br \/>\nthe trajectory of self-reported health at age 65 adn find that receiving<br \/>\n Medicare increases the probability that respondents report excellent or<br \/>\n very good health.&nbsp; One surprising aspect of these findings is that<br \/>\nthese shifts are observed both for respondents who were uninsured prior<br \/>\nto Medicare and for those who were otherwise insured.&nbsp; This result is<br \/>\nsurprising because one would have expected benefits to be concentrated<br \/>\nin those who were not previously insured.&nbsp; The observed improvements are<br \/>\n also surprising because Medicare often provides less comprehensive<br \/>\ncoverage than do most private insurance plans.&nbsp; Polsky et al.<br \/>\nhypothesize that the effect may be due to the stability of Medicare<br \/>\ncoverage compared with private coverage.<\/p>\n<p>Finkelstein &amp;<br \/>\nMcKnight use data from the 1960s to see whether geographic areas with<br \/>\nlower insurance coverage rates prior to the enactment of MEdicare<br \/>\nexperienced improvements in mortality following the enactment of<br \/>\nMedicare relative to areas with higher pre-1965 coverage rates.&nbsp; Earlier<br \/>\n work by Finkelstein using this same strategy documents significant<br \/>\nincreases on hospital spending and utilization, but the work of<br \/>\nFinkelstein &amp; McKnight finds no corresponding improvement in<br \/>\nmortality.&nbsp; The authors conclude that in its first 10 years, the<br \/>\nestablishment of universal health insurance for the elderly had no<br \/>\ndiscernable impact on their mortality.&#8221;&nbsp; Of course, this result applies<br \/>\nto Medicare circa 1970; advances in medical technology and in the scope<br \/>\nof Medicare benefits since then may have greatly increased the marginal<br \/>\nhealth benefits of Medicare coverage.<\/p>\n<p>Taken together, these three<br \/>\n studies of Medicare paint a surprisingly consistent picture:&nbsp; Medicare<br \/>\nincreases consumption of medical care and may modestly improve self<br \/>\nreported health, but has no effect on mortality, at least in the short<br \/>\nrun.&nbsp; Whether there are long-term effects remains an open question; this<br \/>\n uncertainty reflects the limited generalizeability of the natural<br \/>\nexperiment results.<\/p>\n<\/blockquote>\n<p>The science is always evolving.&nbsp;<br \/>\n Obviously, if we get a lot of results showing that there is a big<br \/>\neffect at 65, I&#8217;ll change my mind; but right now, the bulk of the<br \/>\nevidence runs the other way.&nbsp; It&#8217;s worth noting that the later Card<br \/>\npaper itself notes that the aggregate figures show no mortality<br \/>\nimprovement:<\/p>\n<blockquote><p> As is true for health insurance more<br \/>\ngenerally (see Levy and<br \/>\nMeltzer [2004]), it has proven more dif\ufb01cult to identify the health<br \/>\nimpacts of Medicare.9 Most existing studies have focused on mor-<br \/>\ntality as an indicator of health.10 An early study by Lichtenberg<br \/>\n(2001) used Social Security Administration (SSA) life table data<br \/>\nto test for a trend-break in the age pro\ufb01le of mortality at age<br \/>\n65. Although Lichtenberg identi\ufb01ed a break, subsequent analysis<br \/>\nby Dow (2004) showed that this is an artifact of the interval-<br \/>\nsmoothing procedure used to construct the SSA life tables. Com-<br \/>\nparisons based on unsmoothed data show no evidence of a shift at<br \/>\nage 65 (Card, Dobkin, and Maestas 2004). Finkelstein and McK-<br \/>\nnight (2005) explore trends in state-speci\ufb01c mortality rates for<br \/>\npeople over 65 relative to those under 65, testing for a break<br \/>\naround 1966&#8211;the year Medicare was introduced. They also ex-<br \/>\namine the correlation between changes in relative mortality after<br \/>\n1966 and the fraction of elderly people in a region who were unin-<br \/>\nsured in 1963. Neither exercise suggests that the introduction of<br \/>\nMedicare reduced the relative mortality of people over 65, though<br \/>\nit should be noted that the power of these analyses is limited.<\/p><\/blockquote>\n<p>How<br \/>\n could mortality improve at the micro level, and not at the macro<br \/>\nlevel?&nbsp; Increasing utilization of health services is not all mortality improving.&nbsp; As I note in the column, health care can kill as well as<br \/>\nheal&#8211;one estimates puts the death from nosocomial (treatment-induced)<br \/>\ninfections at 80,000 a year. So while it&#8217;s entirely possible&#8211;indeed<br \/>\ncertain&#8211;that some number of people are saved by having insurance, it&#8217;s<br \/>\nalso very likely that some number of people are saved by not having it,<br \/>\nor having less generous insurance, because they don&#8217;t go in for a<br \/>\ntreatment that would have killed them.<\/p>\n<p>The 2009 paper was<br \/>\nlooking at a small subset of conditions that are urgent, and which we&#8217;re<br \/>\n relatively adept at treating.&nbsp; But it may be washed out by the people<br \/>\nwho die having knee surgery.<\/p>\n<p>This is, of course, why comparative<br \/>\neffectiveness research is very popular among wonks.&nbsp; But it&#8217;s trickier<br \/>\nthan it sounds, because patients are very heterogenous.&nbsp; I actually<br \/>\nexpect this problem to go down in the next twenty years or so, as better<br \/>\n genomics gives us more of a handle on which treatments work for whom.<\/p>\n<p>One<br \/>\n thing it does suggest is that if we want to maximize the benefits from<br \/>\nexpanding insurance coverage, we really need to wage a scorched-earth<br \/>\nbattle against nosocomial infection.&nbsp; Hospital hygeine has slipped<br \/>\nmassively from where it was in the thirties, because antibiotics have<br \/>\nmade health care workers lless urgent about it.&nbsp; We need to return to<br \/>\nthe OCD days of yore.<\/p>\n<p><br clear=\"both\" style=\"clear: both;\"\/><br \/>\n<br clear=\"both\" style=\"clear: both;\"\/><br \/>\n  <a style='font-size: 10px; color: maroon;' href='http:\/\/www.pheedcontent.com\/hostedMorselClick.php?hfmm=v3:df3033115bd9c0bcbbcb08c15b46a48b:lwsWco88EDHfNjrLm0h54o6vVxA8fF1Yik0Gxs%2FdxLQkNPy2pDWdFgiJ3d6AbFoolThsBZtiKyIL'><img border='0' title='Email this Article' alt='Email this Article' src='http:\/\/images.pheedo.com\/images\/mm\/emailthis.png'\/><\/a><br \/>\n  <a style='font-size: 10px; color: maroon;' href='http:\/\/www.pheedcontent.com\/hostedMorselClick.php?hfmm=v3:77816fdf66b99ec88af504015ab32a97:W02%2FwtA9tDOn%2BgJfWy%2Bk6cSl1GriJwBPaZsLcBcq76LiIt8V%2BUZc9NJug9zSv4cJlbpOU54LwS%2Bz'><img border='0' title='Add to digg' alt='Add to digg' src='http:\/\/images.pheedo.com\/images\/mm\/digg.gif'\/><\/a><br \/>\n  <a style='font-size: 10px; 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color: maroon;' href='http:\/\/www.pheedcontent.com\/hostedMorselClick.php?hfmm=v3:91b570724cb4fb165c651addcdc350d6:qeg3dN53nyYuKhdub9NdJFztDmhcn4g9mgzq4IupWhkKTsEtsklWEBON3oH89glTuTF6sSNNDfF%2FOQ%3D%3D'><img border='0' title='Add to StumbleUpon' alt='Add to StumbleUpon' src='http:\/\/images.pheedo.com\/images\/mm\/stumbleit.gif'\/><\/a><br \/>\n  <a style='font-size: 10px; color: maroon;' href='http:\/\/www.pheedcontent.com\/hostedMorselClick.php?hfmm=v3:9ac13a59cfb4ea04e0246d6f75efa844:EwuaCINvXC8wvxe1%2B%2FvEwzIO%2F2LY6Bs8393gkvTTzONNFnoX%2FCk%2F8nqfafmpCqOZUHpVAeaWMu3UeA%3D%3D'><img border='0' title='Add to Facebook' alt='Add to Facebook' src='http:\/\/images.pheedo.com\/images\/mm\/facebook.gif'\/><\/a><br \/>\n<br clear=\"both\" style=\"clear: both;\"\/><br \/>\n<a href=\"http:\/\/ads.pheedo.com\/click.phdo?s=33b0e3427babb0bc64d467055bf61744&#038;p=1\"><img decoding=\"async\" alt=\"\" style=\"border: 0;\" border=\"0\" src=\"http:\/\/ads.pheedo.com\/img.phdo?s=33b0e3427babb0bc64d467055bf61744&#038;p=1\"\/><\/a><br \/>\n<img loading=\"lazy\" decoding=\"async\" alt=\"\" height=\"0\" width=\"0\" border=\"0\" style=\"display:none\" src=\"http:\/\/a.rfihub.com\/eus.gif?eui=2225\"\/><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/AtlanticBusinessChannel\/~4\/3gthBBmBbfs\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>You can expect that I&#8217;ll be blogging quite a bit about this topic over the next few days.&nbsp; A reader in Tyler Cowen&#8217;s comments offers this 2009 study: Health insurance characteristics shift at age 65 as most people become eligi- ble for Medicare. We measure the impacts of these changes on patients who are admitted [&hellip;]<\/p>\n","protected":false},"author":80,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-312353","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/312353","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/80"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=312353"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/312353\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=312353"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=312353"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=312353"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}