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Correspondence
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Volume 340:1514-1515 May 13, 1999 Number 19
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Risk Adjustment for Medicare

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 by Iezzoni, L. I.
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To the Editor: Figure 1 of the Sounding Board article entitled "Paying More Fairly for Medicare Capitated Care," by Iezzoni et al. (Dec. 24 issue),1 shows the ratio of predicted to actual Medicare costs for five high-cost diagnostic groups according to three methods of risk adjustment. Ratios under 1.0 indicate underestimates of future costs with use of the adjusted average per capita cost (AAPCC) and principal inpatient diagnostic cost groups (PIP-DCGs). In an earlier report2 this group provided similar information on 17 of the 86 high-risk diagnostic groups. Table 1 shows the actual and predicted average costs per person for . . . [Full Text of this Article]

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