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How the COVID-19 pandemic can distort risk adjustment of health plan payment.
van Kleef, Richard C; Reuser, Mieke.
  • van Kleef RC; Erasmus School of Health Policy & Management, Rotterdam, The Netherlands. vankleef@eshpm.eur.nl.
  • Reuser M; Erasmus School of Health Policy & Management, Rotterdam, The Netherlands.
Eur J Health Econ ; 22(7): 1005-1016, 2021 Sep.
Article in English | MEDLINE | ID: covidwho-1310570
ABSTRACT
The COVID-19 pandemic has led to disruptions in healthcare utilization and spending. While some changes might persist (e.g. substitution of specialist visits by online consultations), others will be transitory (e.g. fewer surgical procedures due to cancellation of treatments). This paper discusses the implications of transitory changes in healthcare utilization and spending for risk adjustment of health plan payment. In practice, risk adjustment methodologies typically consist of two

steps:

(1) calibration of payment weights for a given set of risk adjusters and (2) calculation of payments to insurers by combining the calibrated weights with enrollee characteristics. In this paper, we first introduce a simple conceptual framework for analyzing the (potential) distortions from the pandemic for both steps and then provide a hypothetical illustration of how these distortions can lead to under- or overpayment of insurers. The size of these under-/overpayments depends on (1) the impact of the pandemic on patterns in utilization and spending, (2) the distribution of risk types across insurers, (3) the extent to which insurers are disproportionately affected by the pandemic, and (4) features of the risk adjustment system.
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Full text: Available Collection: International databases Database: MEDLINE Main subject: Risk Adjustment / COVID-19 / Insurance Carriers / Insurance, Health Type of study: Prognostic study Limits: Humans Language: English Journal: Eur J Health Econ Journal subject: Public Health / Health Services Year: 2021 Document Type: Article Affiliation country: S10198-021-01346-5

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Full text: Available Collection: International databases Database: MEDLINE Main subject: Risk Adjustment / COVID-19 / Insurance Carriers / Insurance, Health Type of study: Prognostic study Limits: Humans Language: English Journal: Eur J Health Econ Journal subject: Public Health / Health Services Year: 2021 Document Type: Article Affiliation country: S10198-021-01346-5