MARKET EFFECTS OF EXPANDING MEDICARE REIMBURSEMENT TO OPTOMETRISTS

Title MARKET EFFECTS OF EXPANDING MEDICARE REIMBURSEMENT TO OPTOMETRISTS
Author, Co-Author Barry Barresi
Topic
Year
1992
Day
Sunday
Program Number
Poster 70
Room
Great Hall
Affiliation
Abstract Using Medicare claims data from the period of 1985 to 1989, a pooled time series design study estimated the impact of a provision of the 1986 Omnibus Reconciliation Act which redefined the extent of participation in Medicare by optometrists on the level and provider share of demand for office based eye care. A fixed effect regression model tested a theory of insurance coverage expansion that predicted how the Medicare Amendment affects consumer choice. The study finds that the Medicare Optometry Amendment stimulates the quantity of eye care demanded at both the primary and secondary care level. Optometrists gained significant increases in market share as compared to ophthalmologists. Optometric share of the market for comprehensive eye exams increased sharply to over 25 percent as an average share across all states by 1989. Moreover, the increase in optometric market share of primary care set the stage for an expanded optometric role in influencing the pattern of overall demand and provider market share for secondary diagnostic procedures.
Affiliation of Co-Authors
Outline