Measuring Prices in Health Care Markets Using Commercial Claims Data

Health Serv Res. 2015 Dec;50(6):2037-47. doi: 10.1111/1475-6773.12304. Epub 2015 Mar 16.

Abstract

Objective: To compare methods of price measurement in health care markets.

Data sources: Truven Health Analytics MarketScan commercial claims.

Study design: We constructed medical prices indices using three approaches: (1) a "sentinel" service approach based on a single common service in a specific clinical domain, (2) a market basket approach, and (3) a spending decomposition approach. We constructed indices at the Metropolitan Statistical Area level and estimated correlations between and within them.

Principal findings: Price indices using a spending decomposition approach were strongly and positively correlated with indices constructed from broad market baskets of common services (r > 0.95). Prices of single common services exhibited weak to moderate correlations with each other and other measures.

Conclusions: Market-level price measures that reflect broad sets of services are likely to rank markets similarly. Price indices relying on individual sentinel services may be more appropriate for examining specialty- or service-specific drivers of prices.

Keywords: Health care finance; MarketScan Research Data; medical price indices; quantitative methods.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Commerce / statistics & numerical data*
  • Costs and Cost Analysis
  • Data Collection / methods*
  • Health Services / economics*
  • Humans
  • Insurance Claim Review / statistics & numerical data
  • Insurance, Health / statistics & numerical data
  • Models, Economic*
  • Residence Characteristics
  • United States