Arbeitspapier

Plan Responses to Diagnosis-Based Payment: Evidence from Germany's Morbidity-Based Risk Adjustment

Many competitive health insurance markets adjust payments to participating health plans according to their enrollees’ risk – including based on diagnostic information. We investigate responses of German health plans to the introduction of morbidity-based risk adjustment in the Statutory Health Insurance in 2009, which triggers payments based on “validated” diagnoses by providers. Using the regulator’s data from office-based physicians, we estimate a difference-in-difference analysis of the change in the share and number of validated diagnoses for ICD codes that are inside or outside the risk adjustment but are otherwise similar. We find a differential increase in the share of validated diagnoses of 2.6 and 3.6 percentage points (3-4%) between 2008 and 2013. This increase appears to originate from both a shift from not-validated toward validated diagnoses and an increase in the number of such diagnoses. Overall, our results indicate that plans were successful in influencing physicians’ coding practices in a way that could lead to higher payments.

Language
Englisch

Bibliographic citation
Series: CESifo Working Paper ; No. 6507

Classification
Wirtschaft
National Government Expenditures and Health
Health: General
Health Insurance, Public and Private
Health: Government Policy; Regulation; Public Health
Subject
health plan payment
risk adjustment
managed competition
diagnostic coding
German Statutory Health Insurance

Event
Geistige Schöpfung
(who)
Bauhoff, Sebastian
Fischer, Lisa
Göpffarth, Dirk
Wuppermann, Amelie C.
Event
Veröffentlichung
(who)
Center for Economic Studies and ifo Institute (CESifo)
(where)
Munich
(when)
2017

Handle
Last update
10.03.2025, 11:45 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Bauhoff, Sebastian
  • Fischer, Lisa
  • Göpffarth, Dirk
  • Wuppermann, Amelie C.
  • Center for Economic Studies and ifo Institute (CESifo)

Time of origin

  • 2017

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