Date of Award
2026
Document Type
Thesis
Degree Name
Bachelor of Science
Department
Mathematical Economics
First Advisor
Dr. Kayleigh McCrary
Abstract
Does the growth of Medicare Advantage reduce fee-for-service post-acute care spending through practice-pattern spillovers, or do observed spending differences primarily reflect favorable selection? Using a county-level panel of roughly 2,700 counties (2014–2023) and a two-way fixed effects specification, I find that a one percentage-point increase in MA penetration is associated with $9.54 less per-capita standardized FFS spending. Spending per episode falls while participation rates remain stable, consistent with practice-pattern spillovers rather than compositional changes from selection. Welfare indicators from County Health Rankings, CDC PLACES, and CMS Care Compare show no evidence that spending reductions harm health or care quality. The effect is concentrated in rural and small counties, where MA entry has the largest marginal impact on provider behavior.
Recommended Citation
Bangash, Nyel, "Spillover Effects of Medicare Advantage on Fee-for-Service Post-Acute Care Spending" (2026). Honors Theses. 1887.
https://scholarship.richmond.edu/honors-theses/1887