© 2008 American Public Health Association DOI: 10.2105/AJPH.2007.112185
Rui Li and Ping Zhang are with the Division of Diabetes Translation, Centers for Disease Control and Prevention, Atlanta, Ga. K.M. Venkat Narayan is with the Department of Global Health, School of Public Health, Emory University, Atlanta. Correspondence: Requests for reprints should be sent to Rui Li, 4770 Buford Hwy NE, MS K-10, Atlanta, GA 30341 (e-mail: rli2{at}cdc.gov).
Objectives. The Balanced Budget Act of 1997 authorized Medicare to expand the coverage of glucose monitors and strips to non–insulin users with diabetes and self-management training to non–hospital-based programs. We examined the impact of this expansion on self-monitoring of blood glucose among Medicare beneficiaries who were not using insulin to treat their diabetes. Methods. With data from the 1996–2000 Behavioral Risk Factor Surveillance System and a logistic regression model using a complex survey design, we compared the probability of self-monitoring of blood glucose among Medicare beneficiaries at the frequency recommended by the American Academy of Family Physicians clinical guidelines before and after the Medicare expansion. We also compared the change in the frequency of self-monitoring of blood glucose during these periods between Medicare beneficiaries and persons with private insurance by using a difference-in-difference model. Results. Medicare expansion was positively associated with the probability of self-monitoring of blood glucose for both Medicare beneficiaries and persons with private insurance; the magnitude was between 7.1 and 16.6 percentage points. Conclusions. The Medicare expansion effectively increased the frequency of the recommended self-monitoring of blood glucose in the Medicare population.
Diabetes is a common, growing, and costly disease in the United States.1,2 A disproportionate burden of diabetes occurs among persons aged 65 and older, because of higher disease prevalence among this age group than among younger age groups. In 2004, the prevalence rate of diabetes was 18.1% among persons aged 65 to 74 years and 15.7% among persons aged 75 and older.3 During 2002, the annual direct medical costs for persons aged 65 and older ($47.6 billion) corresponded to an estimated 52% of the total direct medical costs for people with diabetes ($91.8 billion).4 Medicare, the insurer for people aged 65 years and older and for people of all ages who have certain disabilities or end-stage renal disease, bears a large proportion of the direct medical costs of diabetes. During 2005, 32% of the total Medicare expenditure was attributable to treating illness among persons with diabetes.5 Optimal glucose control can prevent or delay diabetes-related complications and thus may potentially reduce or postpone medical costs associated with treating these complications. Self-management education and the self-monitoring of blood glucose level are effective tools for achieving good glucose control.6–13 The federal government passed the Balanced Budget Act of 1997, effective on July 1, 1998, which expanded the Medicare benefits on diabetes. Before the expansion, Medicare covered blood glucose monitors and strips only for insulin users and covered outpatient self-management training only for hospital-based programs. The Balanced Budget Act expanded the coverage of glucose monitors and strips to non–insulin users, allowing 100 strips per 3 months, and expanded the coverage of self-management training to non–hospital-based programs. All coverage was subject to a 20% copayment.14–16 We evaluated the impact of the Medicare expansion on self-monitoring of blood glucose among beneficiaries who were not on insulin treatment, the population on which the policy change had the most direct impact.
Study Population and Data We used nationally representative data from the Behavioral Risk Factor Surveillance System, an annual, state-based, cross-sectional, random, land-based telephone survey of 150 000 to 210000 community-dwelling US adults.17 The Behavioral Risk Factor Surveillance System is composed of a core questionnaire and state-added modules. All states are required to use the core questionnaire, which includes questions about the respondents access to care, demographic characteristics, and personal health status and health behaviors. The state-added modules can vary by state and by year. Information collected from the diabetes modules for each respondent included age of diabetes onset, whether they were on insulin treatment, whether they had eye or foot complications, self-management behavior, and use of diabetes preventive services.17 We used data from 1996 to 2000 in our analysis to cover the periods both before and after the 1998 Medicare expansion took effect. Twenty-eight states surveyed with the diabetes module for all 5 years. The median response rate, based on the Council of American Survey Research Organizations, which considers the complex survey design and sampling methods of the Behavioral Risk Factor Surveillance System, ranged from 48.9% to 63.2% during these 5 years.18 Our study population included persons in these 28 states with Medicare or private insurance as their primary health insurance coverage who had self-reported diabetes and did not use insulin (n = 13419). The exclusion of those who had missing data at any of the variables (n = 3810), yielded a total of 9609 individuals in our final analysis. Overall, the group with missing data had more Blacks, fewer Whites, and more women than the group that had no missing data. Among Medicare beneficiaries, persons with missing data had a lower education level than did those without missing data.
Statistical Analysis
The Medicare expansion may have had different effects on self-monitoring of blood glucose at different time periods. Figure 1
We estimated the impact of the Medicare expansion by controlling for the respondents duration of diabetes and age: persons with a longer duration of disease are more likely to be on oral medication and to have diabetes-related complications, and persons aged younger than 65 and on Medicare should have disabilities including diabetes-related disabilities, such as end-stage renal disease, to be eligible for Medicare. Among both groups, the frequency of self-monitoring of blood glucose should have been higher than among people with diabetes who did not meet these criteria. Other variables that we controlled for included patients gender, race, marital status, education, and family income, because these factors often affect the demand of health services. All control variables were coded as either categorical or dichotomous except for duration of diabetes, which was coded as a continuous variable.
Analysis Second, we used a difference-in-difference model to examine the impact of the Medicare expansion, because the policys effect in the pre- and postpolicy analysis could have been confounded by other environmental changes.20 Our comparison group in the model comprised people who had diabetes and were not treated with insulin but had private health insurance, provided by either their employers or themselves. In this model, if the confounding effect did exist, the "true" effect of the Medicare expansion would be equal to the change of the average probability of self-monitoring of blood glucose among the target population between the pre- and postpolicy period minus the change of the probability of self-monitoring of blood glucose of the comparison group during the same period. To estimate the model, we first pooled the 2 groups (i.e., the policy target group and the comparison group) and added a group indicator variable to the model. Then we added the interaction terms between the group indicator and the time variables that were used to reflect the effect of the Medicare expansion at different time periods. The coefficients of the interaction terms demonstrated the direction and significance of the "true" policy effect. The magnitude of the Medicare expansion effect for a given period was the difference of the change of predicted margins of self-monitoring of blood glucose between the 2 groups during that period. The accumulative effect was the sum of the effects from all 3 periods if they were statistically significant. However, the private insurance comparison group may have been contaminated by the information about the importance of self-monitoring of blood glucose from the public promotion of the Medicare expansion. In this case, the change in the comparison group may have been a result of the contamination from the "treatment" effect.
Table 1
Before the Balanced Budget Act passed, 22.3% of the Medicare and nearly 30% of the privately insured non–insulin users practiced self-monitoring of blood glucose at least once a day. After the Medicare expansion, this percentage increased to 35.1% among the Medicare population and to 35.2% for those with private health insurance. These differences are shown in Figure 2
Figure 3
For the non–insulin users covered by private insurance, the predicted probability of self-monitoring of blood glucose at least once daily was constant before the Balanced Budget Act passed and during the transitional period (Figure 3
The coefficients of the interaction terms between the group indicators and the 3 time periods (transitional, 0–12 months after Medicare expansion, and 13–30 months after Medicare expansion) in the difference-in-difference model were all positive but were significant (P
Laws and regulations are often used as policy tools for improving access to and quality of health care in the United States. They are frequently intended to improve access to those services that offer substantial health benefits but have been underutilized because of market failure or for other reasons such as unaffordability by the poor.21–24 The passing of the Balanced Budget Act was an important milestone in Medicare history. It emphasized the importance of prevention in improving the quality of chronic care and potentially controlling high medical costs. Through the Balanced Budget Act, Medicare expanded its coverage of diabetes monitors and strips and of self-management education. Subsequently, Medicare also expanded or mandated a series of diabetes preventive care services for persons with diabetes.25,26 However, whether this increase in coverage achieved its intended purposes is unknown. This study was the first to our knowledge that analyzed the effect of the Medicare expansion on the self-monitoring of blood glucose. Our research showed that the Medicare expansion was positively associated with the likelihood of self-monitoring of blood glucose at least once a day for non–insulin users, the primary target population of the Medicare expansion. The effect was significant after the expansion took effect and continued increasing during the subsequent years. The overall increase of the probability of self-monitoring of blood glucose was 16.6 percentage points after the policy was signed. Through the study of 10 managed care plans and 60 provider groups across the United States that served 180000 patients with diabetes, Karter et al.27 found that changing from a full out-of-pocket expense to a some out-of-pocket expense or to a no out-of-pocket expense increased the probability of self-monitoring of blood glucose by 9 percentage points and 16 percentage points, respectively. The Medicare expansion decreased out-of-pocket costs on monitors and strips from 100% to 20%. If Karter et al.s results also apply to the Medicare population, the expansion would increase the probability of self-monitoring of blood glucose among non–insulin users by about 9 percentage points, or less than 16 percentage points. The higher response to changes in patients copayment from our study implies that persons with Medicare are more price-sensitive than are persons in health maintenance organizations. The higher response may also be attributed to the spillover effect from the publicity of the Balanced Budget Act as well as the expansion in self-management training. Parente et al.28 reported that improving knowledge of the benefit of the preventive service had a substantial positive effect on the use of the preventive service among the elderly. Schade and McCombs29 found that Medicare beneficiaries who were more exposed to a mass media campaign showed higher use of diabetes services than those who were less exposed. If this was, in fact, the case, the greater effect of the Medicare expansion on self-monitoring of blood glucose than that in Karters study was the outcome of both (1) the decreased out-of-pocket costs on diabetes monitors and strips and (2) the increased knowledge about self-monitoring of blood glucose and benefit coverage. Another possibility for the positive association reported between the Medicare expansion and the probability of performing self-monitoring of blood glucose among Medicare beneficiaries could be the secular trend. Since the late 1980s, after the publication of the results from several large clinical trials and the development of the chronic illness model,30–32 the importance of glycemic control and patient self-management in achieving diabetes treatment goals has been highlighted, which has led to the change in clinical guidelines, with self-management education and self-monitoring of blood glucose as integral parts of diabetes care.33,34 Expanded coverage of diabetes education and testing supplies in the 1997 Balanced Budget Act was a result of this clinical momentum.35 In addition, the requirement of reporting hemoglobin A1c (HbA1c) control by Health Plan Employer Data and Information Set may also provide incentives to health providers to encourage self-management behavior among patients with diabetes. Hence, the increased self-monitoring of blood glucose among Medicare beneficiaries after the Medicare benefit expansion might be partially attributed to the national trend of promoting self-management behavior to achieve optimal HbA1c control. Our results showed that during the post–Balanced Budget Act period, the probability of self-monitoring of blood glucose among the non–insulin users with private insurance also increased. If this increase was caused by national environmental factors, and the Medicare population responded the same, the Medicare expansion would be associated with a 7.1 percentage-point increase (the "true" policy effect we got from the difference-in-difference model) instead of a 16.6 percentage-point increase (results from the pre- and postpolicy analysis) in the probability of self-monitoring of blood glucose. However, it is also possible that the increased probability of self-monitoring of blood glucose among persons with private insurance was caused by the spillover effect from the Medicare expansion. Persons with diabetes covered by private insurance might have gained better knowledge of the importance of self-monitoring of blood glucose because of the publicity surrounding the Balanced Budget Act. In addition, because Medicare holds an enormous market share in health care, Medicare coverage policies can greatly influence private sector activities. Employers may add the coverage of test supplies and self-management education to their insurance benefits following the Medicare expansion; the policy may also spark the proliferation of diabetes testing supply companies with aggressive marketing tools to influence patient behavior. The timing of the increased probability of self-monitoring of blood glucose among the privately insured appears to support the spillover hypothesis.
Figure 3
Limitations Fourth, our results may have underestimated the Medicare expansion effect because: (1) many non–insulin users who manage their diabetes through diet do not need to perform self-monitoring of blood glucose as frequently as do persons who use diabetes medication, and therefore, the Medicare expansion may have had little effect on their self-management behavior; (2) the Medicare expansion may also have had little impact on Medicare beneficiaries who had secondary insurance coverage, such as private insurance or Medicaid, because their second insurance could have already covered diabetes monitors, strips, and self-management education; and (3) although our time frame incorporated the entire period during which the legislation was drafted, passed, and became effective, we have postpolicy data for only a 2.5-year period after the Medicare expansion took effect; thus, we are unable to capture the effect after our study period. Fifth, in the difference-in-difference model, the privately insured may not be a good comparison group for the Medicare beneficiaries, because all the privately insured are younger than 65 and they may have different unmeasured characteristics than Medicare beneficiaries who consist of persons 65 and older and persons with disabilities. Finally, self-monitoring of blood glucose is only a process measure that facilitates diabetes glucose management. Ultimately, we would hope that this change in health coverage policies could impact the patient HbA1c level, diabetes complications, and costs related to poor glycemic control. In conclusion, our results demonstrated that the Medicare expansion in 1998 was positively associated with the likelihood that diabetes patients performed self-monitoring of blood glucose as recommended. This result implies that laws and regulations can be effective public health policy tools to improve certain underutilized preventive diabetes care services. Although we analyzed a policy introduced in the late 1990s and for beneficiaries with diabetes only, our conclusion has important policy implications for current and future efforts to increase other underutilized preventive care services for persons with diabetes or other illnesses. Future studies are needed to examine the effect of the Medicare laws on the intermediate outcome measures such as HbA1c level, long-term health outcomes, and total Medicare health care expenditure.
The authors thank 2 anonymous reviewers and Stephanie Rutledge at the Division of Diabetes Translation for their help on editing and for providing critical comments for the article.
Human Participant Protection
Peer Reviewed
Contributions Accepted for publication May 21, 2007.
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