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Readmission penalties and health insurance expansions: A dispatch from Massachusetts
Author(s) -
Chen Christopher,
Scheffler Gabriel,
Chandra Amitabh
Publication year - 2014
Publication title -
journal of hospital medicine
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.128
H-Index - 65
eISSN - 1553-5606
pISSN - 1553-5592
DOI - 10.1002/jhm.2213
Subject(s) - quartile , medicine , confidence interval , health insurance , medicaid , population , emergency medicine , health care , natural experiment , patient protection and affordable care act , demography , environmental health , pathology , sociology , economics , economic growth
BACKGROUND Payers are penalizing hospitals for high readmission rates. It is unknown whether major changes in population insurance coverage can affect readmission rates, despite the Affordable Care Act's coverage expansions coming into effect this year. OBJECTIVE To evaluate the impact of a large‐scale insurance expansion on hospital readmissions, using Massachusetts' 2006 health reform as a natural experiment. DESIGN Difference‐in‐difference time‐series design. SETTING All Massachusetts acute‐care hospitals. PATIENTS Inpatient visits from 2004 to 2010. MEASUREMENTS Primary outcome was the hospital 30‐day readmission rate. Readmissions to any Massachusetts hospital were tracked. RESULTS Decreases in uninsurance rates during and after reform were largely limited to the hospital quartile with the highest prereform uninsurance rates (from 14% uninsured at the start of the reform to 2.9% by the end of the study period). The other hospitals collectively experienced a smaller decline in their uninsured admissions (5.9% at the start of reform to 2.5% by the end of the study period). According to difference‐in‐difference regression analysis, the highest uninsured hospital quartile experienced a modest increase in their unadjusted readmission rate of 0.6 percentage points (95% confidence interval: 0.1%–1.1%) during the reform period as compared to the other hospital quartiles ( P = 0.01). This represents a relative increase of 4.5% in the readmission rate. Risk‐adjusted readmission rates showed no corresponding change. CONCLUSIONS The Affordable Care Act's insurance expansion may be associated with an increase in unadjusted readmission rates among hospitals that cared for disproportionate numbers of uninsured patients. Risk‐adjustment appears to take this effect into account. Journal of Hospital Medicine 2014;9:681–687. © 2014 Society of Hospital Medicine