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Fee-Screen Reimbursement and Physician Fee Inflation

Author

Listed:
  • Donald E. Yett,
  • William Der
  • Richard L. Ernst
  • Joel W. Hay

Abstract

Empirical tests of the physician fee-screen inflation hypothesis are applied to insurance claims data for three Blue Shield plans for 1973 to 1978. A framework for physician pricing behavior is developed, which includes a two-period model of inflationary pricing based on fee-screen updating, and some alternatives, including a myopic (single-period) price formulation model. Each of these models is shown to be a testable parameter subset of the general estimation equation. The results generally conform with the fee-screen inflation hypothesis, suggesting that the current Medicare and Blue Shield UCR physician reimbursement systems encourage excessive price increases.

Suggested Citation

  • Donald E. Yett, & William Der & Richard L. Ernst & Joel W. Hay, 1985. "Fee-Screen Reimbursement and Physician Fee Inflation," Journal of Human Resources, University of Wisconsin Press, vol. 20(2), pages 278-291.
    • Handle: RePEc:uwp:jhriss:v:20:y:1985:i:2:p:278-291
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    Cited by:

    1. Gillis, Kurt D. & Lee, David W., 1997. "Medicare, access, and physicians' willingness to accept new Medicare patients," The Quarterly Review of Economics and Finance, Elsevier, vol. 37(3), pages 579-603.

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