The Choice of Medical Care Price Index: Implications for Life Care Plan Valuations

2020 ◽  
Author(s):  
Patrick Gaughan ◽  
Viviane Luporini
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Care Plan ◽  
Life Care ◽  
Consumption Expenditures ◽  
Care Plans ◽  
Personal Consumption ◽  
Inflation Rates ◽  
The Difference ◽  
Using Data

Abstract This study examines the importance of using appropriate inflation measures in the estimation of a life care plan value. Using data from 1989 through 2018, we compare medical inflation rates measured by the Consumer Price Index Medical (CPI Medical) and the Personal Consumption Expenditures Health (PCE Health) price index while discussing the reasons why the indices differ. We also explain why certain policymakers favor the Personal Consumption Expenditure (PCE) over the Consumer Price Index (CPI). In demonstrating how the value of life care plans can differ based upon the use of either of these indices we applied 10-year historical arithmetic averages of both indices to a large hypothetical life care plan. Our calculations indicate that using the CPI versus the PCE results in a difference that is 7.5 times the initial value of the plan, after accumulation of nominal annual values that are undiscounted to present value. We also show how the difference between using the CPI Medical versus the PCE Health increases over time, implying that using one price index or the other will have a greater impact on life care plan values the longer the projection period. Our analysis shows that experts should consider the use of PCE indices when valuing life care plans.

scholarly journals The CPI–PCEPI Inflation Differential: Causes and Prospects

2020 ◽  
pp. 1-8
Author(s):  
Wesley Janson ◽  
Randal J. Verbrugge ◽  
Carola Conces Binder
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Open Market ◽  
Financial Contracts ◽  
Inflation Target ◽  
Consumption Expenditures ◽  
Inflation Forecasts ◽  
Personal Consumption ◽  
Inflation Differential ◽  
Historical Episode

The Federal Open Market Committee’s inflation target is stated in terms of the personal consumption expenditures price index (PCEPI). The PCEPI, like the consumer price index (CPI), measures inflation in the expenditures of households, but these indexes differ in purpose, scope, and construction. Notably, since the CPI is used as the reference rate for numerous financial contracts, one can derive implied longer-run CPI inflation forecasts from financial contracts. Such forecasts are widely reported. But if policymakers are to use these forecasts to guide their pursuit of the inflation target, they need to translate these CPI inflation forecasts into corresponding implied PCEPI forecasts. Since 1978, CPI inflation has averaged 0.3 percentage points above PCEPI inflation, but this differential has varied significantly over time. In this Commentary, we explain why, investigate a key historical episode, and provide an updated estimate of the likely differential going forward.

scholarly journals Törnqvist Formula for Сalculating a Consumer Price Index in Russia: Theory and Practice

2020 ◽  
Vol 27 (5) ◽  
pp. 87-94
Author(s):  
М. A. Kozlova
Keyword(s):  
Price Index ◽  
Empirical Studies ◽  
Consumer Price Index ◽  
Theory And Practice ◽  
Consumer Market ◽  
Country Level ◽  
Consumer Prices ◽  
Realistic Description ◽  
The Difference ◽  
Main Consumer

The article reflects the author’s position on the adjustment of the so-called substitution bias, which affects the value of the consumer price index, currently calculated using the Laspeyres formula. The author proposes a solution to the problem of the adequacy of statistical measurements of the dynamics of consumer prices in the case when, as a result of changing cost of the consumer basket, a buyer replaces a relatively expensive product with a relatively cheaper one. This solution is based on the existing index construction methodology (axiomatic, economic and stochastic approaches). The article substantiates the use of the Törnqvist formula, which has better properties in comparison with other formulae used in the construction of superlative indices. The authors calculated the Törnqvist price index for Russia based on Rosstat methodology and data using country-level quarterly group price indices and shares of consumer spending. To evaluate the results of empirical testing Laspeyres price index was compiled using the same quarterly data as the Törnqvist index. The values of the Törnqvist price index in most cases are less than the price dynamics obtained according to the Laspeyres formula. This conclusion is proved both theoretically and empirically, and it is confirmed for Russia as well. However, due to the non-observance of the conditions of smooth trends in consumer prices, the difference between the values of the Törnqvist and Laspeyres indices is significantly larger in certain quarters than that presented in empirical studies in other countries. Consumer price index, calculated using the Törnqvist formula, in the system of indicators of price statistics in Russia can be defined as an indicator that specifies the main consumer price index. Calculation of its value is necessary for a more realistic description of the processes taking place in the consumer market.

Abstract TMP75: Average Medicare Reimbursement for Stroke Care Has Decreased From 2000-2019

Stroke ◽  
2020 ◽  
Vol 51 (Suppl_1) ◽  
Author(s):  
Andrew R Pines ◽  
Jack Haglin ◽  
Bart Demaerschalk
Keyword(s):  
United States ◽  
Price Index ◽  
Hemorrhagic Stroke ◽  
Consumer Price Index ◽  
Stroke Care ◽  
The United States ◽  
Medicare Reimbursement ◽  
Reimbursement Rate ◽  
Icd Codes ◽  
The Difference

Introduction: There is a lack of data regarding financial trends for procedural reimbursement in stroke care. An understanding of such trends is important as progress is made to advance agreeable reimbursement models in the care of stroke patients. The purpose of this study was to evaluate monetary trends in Medicare reimbursement rates for commonly utilized procedures in stroke care from 2000 to 2019. Methods: Reimbursement data for Current Procedural Terminology (CPT) codes was extracted from the Centers for Medicare & Medicaid Services. CPT codes were determined by frequency of procedures for Stroke-related ICD codes at our institution. All monetary data was adjusted for inflation to 2019 US dollars utilizing changes to the United States consumer price index. Results: After adjusting for inflation, the average reimbursement for all four included procedures within hemorrhagic stroke (ICD I60-I62) decreased by 18.4% from 2000 to 2019. The average reimbursement for two procedures within ischemic stroke (ICD I63), craniotomy and thrombectomy, increased by 3.5% (2003 -2019) and increased 3.0% (2016-2019), respectively. Data was not available for craniotomy prior to 2003, and not available for thrombectomy prior to 2016. Further, the adjusted reimbursement rate for included telestroke codes decreased by 12.1% from 2010-2019. All other included procedures decreased by 3.5% throughout this time. The difference in reimbursement rate between telestroke and other stroke-related procedures was statistically significant (p < .0001). Conclusion: To our knowledge, this is the first study to evaluate trends in Medicare reimbursement for stroke care. When adjusted for inflation, Medicare reimbursement for included procedures has steadily decreased from 2000 to 2019. Increased awareness of these trends is important to assure continued access to quality stroke care in the United States.

scholarly journals Post COVID-19 Will Telemedicine replace Traditional Medicine?

2020 ◽  
pp. 1-5
Keyword(s):  
The United States ◽  
Care Plan ◽  
Life Care ◽  
Licensed Practical Nurse ◽  
Care Plans ◽  
Practical Nurse ◽  
The Government ◽  
The Cost ◽  
New Industry ◽  
Trump Administration

Telehealth services have grown exponentially in 2020. Both the government and more than 275 technology companies have made significant investments in this new industry. The Trump Administration has streamlined the process to benefit 13.7 million Medicare Advantage enrollees. Amwell, the leading telemedicine company in the United States received a $100 million investment from Google, plus $100 million towards a pilot program from the FCC. Attorneys will be affected because any life care plan attributes the largest expense to the hiring of a Licensed Practical Nurse (LPN), and their services are being impacted by telehealth technology in the last five years. Thanks to telehealth technology, nurses can work remotely, and this may lower the cost of support care mentioned in the life care plans that attorneys use.

scholarly journals Temporary Price Changes, Inflation Regimes, and the Propagation of Monetary Shocks

2020 ◽  
Vol 12 (1) ◽  
pp. 104-152
Author(s):  
Fernando Alvarez ◽  
Francesco Lippi
Keyword(s):  
Price Index ◽  
Price Level ◽  
Consumer Price Index ◽  
Monetary Shocks ◽  
Scanner Data ◽  
Optimal Plan ◽  
Price Changes ◽  
Inflation Rates ◽  
Wide Range ◽  
Menu Cost

We present a sticky price model that features the coexistence of many price changes, most of which are temporary, with a modest flexibility of the aggregate price level. Stickiness is introduced in the form of a price plan, namely a set of two prices: either price can be charged at any moment but changing the plan entails a menu cost. We analytically solve for the optimal plan and for the aggregate output response to a monetary shock. We present evidence consistent with the model implications using scanner data, as well as Consumer Price Index data across a wide range of inflation rates. (JEL D22, E31, E52, L11, O11, O23)

scholarly journals Analisis Faktor Indeks Harga Konsumen Kota Semarang

2019 ◽  
Vol 2 (2) ◽  
pp. 113
Author(s):  
Novia Nafisah ◽  
Respatiwulan Respatiwulan
Keyword(s):  
Factor Analysis ◽  
Urban Communities ◽  
Price Index ◽  
Consumer Price Index ◽  
Consumption Patterns ◽  
Economic Conditions ◽  
Underlying Factor ◽  
Inflation Rates ◽  
Eigen Value

<p>The Consumer Price Index (CPI) can describe consumption patterns in the community. The CPI is also used to calculate inflation rates that reflect a country's economic conditions. The CPI for sub-expenditure consists of 7 groups divided into 35 sub-groups. Factor analysis on CPI was conducted to reduce variables, to identify underlying factors, and to classify variables in the Semarang City CPI expenditure group from January 2014 to August 2017. As the result, there is only one underlying factor, namely the primary needs of urban communities with cumulative variance value of 88.509%, eigenvalues of 23.012 consisting of 27 subgroup variables.</p><p><strong>Keywords</strong><strong> :</strong> Consumer Price Index (CPI)<strong>, </strong>factor analysis, eigen value</p>

scholarly journals Communication of advance care planning decisions: a retrospective cohort study of documents in general practice

2020 ◽  
Author(s):  
Laura Panozzo ◽  
Pam Harvey ◽  
Meagan-Jane Adams ◽  
Dennis O'Connor ◽  
Bernadette Ward
Keyword(s):  
General Practice ◽  
End Of Life Care ◽  
Retrospective Cohort ◽  
Care Plan ◽  
Life Care ◽  
Hospital Records ◽  
Care Plans ◽  
Advance Care Plan ◽  
Advance Care ◽  
Enduring Power

Abstract Background Doctors, particularly general practitioners, play a significant role in assisting patients to create advance care plans. When medically indicated, these documents are important tools to promote congruence between end-of-life care and patient’s personal preferences. Despite this, little is known regarding the availability of these documents in hospitals. The aim of this study was to identify the proportion of people who died in hospital without an advance care plan and how many of these had advance care planning (ACP) documents in their general practice records.Methods A retrospective cohort study was conducted of patient hospital records with manual linkage to general practice records. The large regional hospital in Victoria, Australia has a catchment population in excess of 300,000 people. The study sample was patients aged 75 years and over who died in the hospital between 1 January 2016 and 31 December 2017. The hospital records of these patients were examined to identify those which did not have a system alert for ACP documents on the file. Alerted ACP documents were limited to those legislated in the state of Victoria: advance care plan, Enduring Power of Attorney (Medical Treatment) or Enduring Power of Guardianship. Where no ACP document system alert was found in the hospital record, the patient’s nominated general practice was consented to participate and the corresponding general practice record was examined. Data were analysed using descriptive statistics.Results Of the 406 patients who died in hospital, 76.1% (309) did not have a system alert for any ACP document. Of the 309 hospital records without a system alert, 144 (46.7%) corresponding general practice records were examined. Of these, 14.6% included at least one ACP document, including four advance care plans, that were not available in hospital.Conclusions Unless ACP documents are consistently communicated from general practice, patient’s preferences may be unknown during end-of-life care. It is important that both doctors and patients are supported to use connected electronic health records to ensure that documents are readily available to healthcare staff when they are required.

Great Expectations: A Tactical Asset Allocation Framework for Diversified Real Asset Portfolios

2019 ◽  
Keyword(s):  
Asset Allocation ◽  
Price Index ◽  
Consumer Price Index ◽  
Stable State ◽  
Inflation Expectations ◽  
Great Expectations ◽  
Single Measure ◽  
Tactical Asset Allocation ◽  
The Difference ◽  
Unexpected Inflation

Diversified real return strategies are multi-asset portfolios structured to possess a heightened sensitivity to inflation relative to traditional stocks and bonds. The majority of such strategies focus on a single measure of inflation, the Consumer Price Index. However, a more comprehensive way to construct inflation-sensitive portfolios is in terms of expected and unexpected inflation, the latter defined as the difference between a particular measure of inflation expectations and realized inflation. To that end, in this article, the authors describe an investment framework that dynamically classifies each type of inflation as belonging to one type of state: a stable state, in which inflation continues its longer-term trend, and a deviant state, in which expected or unexpected inflation departs significantly from its longer-term average. The authors show how the framework can be used to build portfolios using information from both stable and deviant states to outperform realized inflation through different market environments.

Writing and sharing care plans in general practice

2020 ◽  
Vol 13 (2) ◽  
pp. 117-122
Author(s):  
Darren P Jackson
Keyword(s):  
End Of Life Care ◽  
Care Plan ◽  
Easy Access ◽  
Life Care ◽  
Care Providers ◽  
Good Care ◽  
Care Plans ◽  
Care Givers ◽  
Primary Care Teams ◽  
Access Information

Sharing a well-written care plan allows individuals, carers, emergency care providers and primary care teams to access information about managing patients’ problems in line with their wishes. It allows the documentation and sharing of information from conversations with patients, relatives and carers. There are multiple formats for patient care plans, but this article will focus on care planning for patients with frailty or in end of life care. A care plan is only as good as the conversation that informs it. A good care plan requires clear documentation and effective sharing of the information with easy access for all care givers.

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