# Higher Primary Care Reimbursements and the Quality of Care for Dually-Eligible Patients with Alzheimer's Disease and Related Dementias in Skilled Nursing Facilities

> **NIH NIH R01** · WEILL MEDICAL COLL OF CORNELL UNIV · 2021 · $441,180

## Abstract

PROJECT SUMMARY/ABSTRACT
Medicare fee-for-service beneficiaries experience 2.4 million skilled nursing facility (SNF) stays annually. Nearly
1.5 million of these stays are for patients with Alzheimer’s disease or related dementias (ADRD) and over 1
million are for dually-eligible beneficiaries. Hospitalized patients with ADRD are four times more likely to be
discharged to a skilled nursing facility (SNF) compared to patients without ADRD. Patients with ADRD have
longer SNF length of stay and re-hospitalization rates that are nearly 50% higher than for patients without ADRD.
Medicare spends $6,547 per beneficiary annually on SNF stays among those with ADRD, compared to $448
among beneficiaries without ADRD. Dual-eligibles who receive care in SNFs are more likely to experience
adverse outcomes, including re-hospitalization or becoming permanently institutionalized, compared to non-
duals. Many of the adverse events experienced by dual-eligibles in SNFs are thought to arise from fragmented
care that is poorly coordinated and are potentially avoidable with proper preventive care and improved
coordination of services. The Medicaid Primary Care Fee Bump provides a natural experiment to examine the
impact of higher physician reimbursement on the quality of care for dually-eligible SNF patients with ADRD. Over
a two-year period (2013-2014), the initiative required states’ Medicaid programs to reimburse providers the same
rates as Medicare for primary care services for all Medicaid patients. For dual-eligibles, the fee bump required
Medicaid programs to reimburse providers the full 20% Medicare coinsurance for primary care services, which
included evaluation and management services provided in SNFs. Prior to the fee bump and following its
expiration, states covered 0 to 20 percentage points of Medicare Part B coinsurance. Using a national sample
of all dually-eligible SNF patients with ADRD over an eight-year period (2012-2019), this project will take
advantage of the natural experiment created by the Medicaid Primary Care Fee Bump to identify the impact of
higher reimbursement for primary care services on the quality and cost of care for these patients. This will be
done using two sources of variation: (1) the timing of both the implementation and termination of the fee bump
and (2) variation in the states reimbursing physicians the full 20% Medicare coinsurance for dual-eligibles before
and after the fee bump. The quasi-experimental nature of the research design will allow estimation strongly
indicative of causation and our national sample of all dually-eligible SNF patients with ADRD will help ensure
that the results are generalizable. The project will provide highly valuable evidence indicating whether increased
reimbursement for primary care services in SNFs improves the quality and/or lowers the cost of care for dually-
eligible patients with ADRD. This issue has immediate policy relevance as 31 states did not maintain higher
reimbursement rates for...

## Key facts

- **NIH application ID:** 10214001
- **Project number:** 1R01AG072546-01
- **Recipient organization:** WEILL MEDICAL COLL OF CORNELL UNIV
- **Principal Investigator:** Hye-Young Jung
- **Activity code:** R01 (R01, R21, SBIR, etc.)
- **Funding institute:** NIH
- **Fiscal year:** 2021
- **Award amount:** $441,180
- **Award type:** 1
- **Project period:** 2021-05-01 → 2024-02-29

## Primary source

NIH RePORTER: https://reporter.nih.gov/project-details/10214001

## Citation

> US National Institutes of Health, RePORTER application 10214001, Higher Primary Care Reimbursements and the Quality of Care for Dually-Eligible Patients with Alzheimer's Disease and Related Dementias in Skilled Nursing Facilities (1R01AG072546-01). Retrieved via AI Analytics 2026-05-24 from https://api.ai-analytics.org/grant/nih/10214001. Licensed CC0.

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