Adjusting Capitation Rates Using Objective Health Measures and Prior Utilization

Joseph P. Newhouse, Willard G. Manning, Emmett B. Keeler, Elizabeth M. Sloss

ResearchPublished 1989

Several analysts have proposed adding adjusters based on health status and prior utilization to the adjusted average per capita cost formula. This Note, reprinted from Health Care Financing Review, Vol. 10, No. 3, Spring 1989, estimates how well such adjusters predict annual medical expenditures among non-elderly adults. Both measures substantially improve on the variables currently used. If only health measures are added, 20-30 percent of the predictable variance is explained; if only prior use is added, more than 40 percent is explained. The results support including some measure of use in the formula until better health measures are developed.

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  • Copyright: RAND Corporation
  • Availability: Available
  • Year: 1989
  • Print Format: Paperback
  • Paperback Pages: 14
  • Paperback Price: $20.00
  • Document Number: N-2986-HCFA

Citation

RAND Style Manual
Newhouse, Joseph P., Willard G. Manning, Emmett B. Keeler, and Elizabeth M. Sloss, Adjusting Capitation Rates Using Objective Health Measures and Prior Utilization, RAND Corporation, N-2986-HCFA, 1989. As of September 13, 2024: https://www.rand.org/pubs/notes/N2986.html
Chicago Manual of Style
Newhouse, Joseph P., Willard G. Manning, Emmett B. Keeler, and Elizabeth M. Sloss, Adjusting Capitation Rates Using Objective Health Measures and Prior Utilization. Santa Monica, CA: RAND Corporation, 1989. https://www.rand.org/pubs/notes/N2986.html. Also available in print form.
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