Just as there are many types of medical tests to assess a person's health, there are numerous measures of economic performance that can be used to evaluate "economic health." The Health Care Cost Institute (HCCI), with grant funding from the Robert Wood Johnson Foundation (RWJF), has developed a series of metrics, collectively referred to as the Healthy Marketplace Index (HMI), to assess the economic performance of health care markets, both across markets and within markets over time. This report describes the technical details of the calculations as well as the results. The metrics are related to health care prices, productivity, and competition and were calculated for the years 2011 through 2013. These metrics were developed following an HMI prototype development grant from RWJF and numerous discussions with leading health care industry experts and researchers. This report provides baseline measurements of economic aspects of health care markets. These metrics are intended to be the starting point for ongoing tracking of health care market "health" and a reference for identifying areas that warrant further investigation. The HMI metrics focus on the population of individuals with employer-sponsored insurance (ESI), which accounted for nearly 60 percent of the U.S. population in 2011.1 All metrics are calculated using HCCI's administrative claims data base, which includes health insurance membership and claims data for more than one-fourth of the national ESI population younger than 65--more than 40 million individuals per year. The metrics were developed on the basis of the feasibility of calculating measures for numerous market areas and of the ability to provide practical information for policy makers, employers, and researchers.
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