SAS Programming with Medicare Administrative Data. Matthew Gillingham

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SAS Programming with Medicare Administrative Data - Matthew Gillingham


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an adjudication process whereby payment is determined. After you meet your requirements as a beneficiary by paying your deductible and coinsurance, your insurance company typically pays the remainder of the claim for eligible services (perhaps an amount adjusted to account for negotiated purchasing agreements) according to the terms of your coverage. Your health insurance company is able to pay these bills because it maintains a fund of money reserved for just such purposes. This fund is derived in part from the premium payments made by you and other beneficiaries (and, in the case of for-profit insurance companies, the accumulation of profit). These premium payments are determined statistically by actuaries and take into account the projected risk associated with the level of health of pools of covered beneficiaries.

      • With about 47 million Medicare beneficiaries, we can expect the administrative data files we use to be quite large. As such, we will need to consider efficient programming techniques. Many of the exercises in later chapters address efficiency topics.

      • As a social insurance program, Medicare coverage is provided regardless of medical history. Therefore, if you are used to working with commercial healthcare claims data, you will likely notice some unique characteristics of the Medicare population, such as a higher prevalence of chronic conditions.

      • The administrative data we use for research purposes are updated on a regular basis, but only with claims that have been received and adjudicated and deemed final action. As such, the files we use at any given time do not contain all final action claims submitted and paid up to the date of extraction of the data. It is common practice to wait at least three months for paid claims to appear in the claims files maintained by CMS. For example, a request for claims for the full calendar year 2014 is best made on or after April 1, 2015.

      • Depending on what you are studying, care must be taken to determine the correct composition of your study population. For instance, our example research project will study only those beneficiaries continuously enrolled in fee-for-service Medicare during a defined timeframe. Other studies may wish to focus on beneficiaries entitled to Medicare based on being disabled. We will see in Chapter 6 that we can use enrollment data to determine a beneficiary’s reason for entitlement and define our study population.

      In this chapter, we set a foundation for programming with SAS and Medicare administrative data by examining the following:

      • Understanding the Medicare program and the particulars of Medicare coverage is absolutely essential to successfully programming with Medicare administrative data.

      • Medicare is a social insurance program that provides beneficiaries with an array of health insurance coverage, regardless of income or medical history.

      • The majority of Medicare beneficiaries are eligible for Medicare insurance because they are aged 65 and over. However, Medicare also insures beneficiaries who are permanently disabled (receiving Social Security Disability Insurance or SSDI), have ESRD, or have ALS.

      • Medicare benefits are divided and defined in four parts: Part A (Hospital Insurance), Part B (Supplemental Medical Insurance), Part C (Medicare Advantage), and Part D (outpatient prescription drug coverage). Each Part covers a different type of care or set of services. These Parts are a way of describing coverage, but also a way of organizing the way we think about the administrative data files we will use throughout this book.

      • Like other health insurance plans, Medicare does not cover every possible medical service or procedure.

      • The primary purpose of Medicare payment systems is not to create data for research, but to adjudicate and pay claims. This fact has implications for using the administrative data files and means that the user must understand the Medicare program.


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