Health
Research articles · Dec 31, 2011
Challenges and solutions in constructing a microsimulation model of the use and costs of medical services in Australia Sharyn Lymer, Laurie Brown, Ann Harding, Alicia Payne
NATSEM, University of Canberra, Australia; Department of Treasury, Langton Crescent, Australia
Volume 4(3) Winter 2011
Cite as: S. Lymer, L. Brown, A. Harding, A. Payne; 2011; Challenges and solutions in constructing a microsimulation model of the use and costs of medical services in Australia ; International Journal of Microsimulation; 4(3); 17–31. doi: 10.34196/ijm.00057
Abstract This paper describes the development of a microsimulation model ‘HealthMod’ which simulates the use and costs of medical and related services by Australian families. Australia has a universal social insurance scheme known as ‘Medicare’ which provides all Australians with access to free or low-cost essential medical services. These services are provided primarily by general practitioners as well as specialist doctors but also include diagnostic and imaging services. Individuals may pay a direct out-of pocket contribution if fees charged for services are higher than the reimbursement schedule set by government. HealthMod is based on the Australian 2001 National Health Survey. This survey had a number of deficiencies in terms of modelling the national medical benefits scheme. The article outlines three major methodological steps that had to be taken in the model construction: the imputation of synthetic families, the imputation of short-term health conditions, and the annualisation of doctor visits and costs. Some preliminary results on the use of doctor services subsidised through Australia’s Medicare are presented.
This article contains 1 figure and 10 tables.
Figures Figure 1. Distribution of number of short term health conditions per person. Tables Table 1. Medicare subsidised medical services and benefits paid by MBS category (processed by Medicare Australia July 2005 to June 2006).
MBS Category
No. Services (‘000,000)
Benefit ($m)
No. Services per 1,000 pop.
Benefit ($) per 1,000 pop.
1 Professional Attendances
1,260.5
5,266.0
6,118.3
255,602.7
2 Diagnostic Procedures and Investigations
43.3
251.2
210.3
12,190.9
3 Therapeutic Procedures
153.4
1,790.6
744.7
86,914.5
4 Oral and Maxillofacial Services (by Approved Dental Practitioners)
0.7
8.5
3.6
414.4
5 Diagnostic Imaging Services
149.2
1,609.4
724.3
78,118.7
6 Pathology Services
828.9
1,641.8
4,023.3
79,693.0
7 Cleft Lip and Cleft Palate
0.1
1.3
0.3
61.9
8 Miscellaneous Services
37.5
407.4
181.9
19,776.4
Total
2,473.7
10,976.3
12,006.9
532,772.5
Table 2. Closeness of match – age group (percentage distribution).
Age Group (years) – STINMOD /01A
Age Group (years) – NHS
0–4
5–9
10–14
15–19
20–24
25–29
30–34
35–39
40–44
45–49
50–54
55–59
60–64
65–69
70–74
75+
0–4
79.0
18.6
2.4
.
.
.
.
.
.
.
.
.
.
.
.
.
5–9
14.4
65.4
20.1
.
.
.
.
.
.
.
.
.
.
.
.
.
10–14
4.6
17.7
77.7
.
.
.
.
.
.
.
.
.
.
.
.
.
15–19
.
.
.
69.7
13.4
7.7
5.2
0.8
0.8
0.4
1.1
0.8
0.1
0.1
.
.
20–24
.
.
.
26.2
28.1
18.0
8.1
5.2
6.7
3.3
1.0
1.9
1.0
0.3
0.1
.
25–29
.
.
.
7.1
15.2
32.8
22.0
5.7
3.8
5.1
3.3
1.5
2.6
0.8
0.2
.
30–34
.
.
.
2.1
6.6
9.1
40.6
21.2
6.2
6.4
3.8
1.2
0.8
0.8
0.6
0.6
35–39
.
.
.
1.2
2.7
5.8
6.7
45.0
19.4
7.6
5.0
2.6
1.3
0.9
0.6
1.0
40–44
.
.
.
0.9
1.9
3.5
5.3
10.6
43.6
15.3
10.1
3.1
2.1
1.5
1.4
0.5
45–49
.
.
.
0.9
1.2
1.6
1.7
4.6
14.2
38.2
20.4
7.4
2.6
3.1
2.4
1.7
50–54
.
.
.
0.1
1.0
0.8
1.0
2.8
5.8
11.9
32.4
30.4
7.5
2.4
1.1
2.9
55–59
.
.
.
.
0.4
0.3
1
1.0
2
4.7
8.6
31.8
36.1
6.4
2.8
4.8
60–64
.
.
.
.
0
.
0.0
0.2
0.5
1.5
2.3
5.4
39.0
41.8
5.0
4.2
65–69
.
.
.
.
.
.
0.1
0.2
0.3
0.5
1.0
2.3
6.2
31.7
50.3
7.4
70–74
.
.
.
.
0.1
0.1
.
0.1
0.2
1
1.7
3.6
3.2
3.3
37.5
49.3
75+
.
.
.
.
.
.
.
0.0
0.3
0.0
0.9
1.4
3.2
1.5
3.2
89.2
All
9.1
8.5
6.6
6.5
4.7
5.8
7.1
8.0
7.9
6.8
6.1
5.3
4.8
3.9
3.8
5.3
Table 3. Closeness of match – equivalent income deciles (percentage distribution).
Equivalent income decile – STINMOD/01A
Equivalent Income decile – NHS
1
2
3
4
5
6
7
8
9
10
1
69.9
16.4
13.3
0
0.1
0.1
0.2
.
.
.
2
20.5
46.3
33
.
.
0.1
0.1
.
.
.
3
7.1
24.9
67.5
.
.
0.3
0.3
.
.
.
4
.
.
.
39.4
22.6
28.4
9.6
.
.
.
5
.
.
.
19.1
29.1
23.7
28.0
.
.
.
6
.
.
.
12.3
20.3
37.4
30.0
.
.
.
7
.
.
.
2.4
9.7
18.0
69.9
.
.
.
8
.
.
.
.
.
.
.
67.7
30.3
1.9
9
.
.
.
.
.
.
.
18.6
47.3
34.1
10
.
.
.
.
.
.
.
12.3
23.6
64.1
Table 4. Closeness of match – number of persons in household (percentage distribution).
Number of persons in household – STINMOD/01A
Number of persons in household – NHS
1
2
3
4
5
6+
1
67.0
14.9
8.0
4.4
3.0
2.6
2
10.0
75.8
9.7
3.3
0.9
0.3
3
3.4
16.5
54.1
23.2
2.5
0.3
4
1.8
1.4
17.1
61.2
14.9
3.7
5
1.5
0.9
2.6
35.1
44.6
15.4
6+
9.1 12.8
1.3 26.6
2.4 18.2
7.5 25
29.4 11.7
50.2
All
12.8
26.6
18.2
25
11.7
5.7
Table 5. Closeness of match – income unit type (percentage distribution).
Income Unit Type -STINMOD/01A
Income Unit Type – NHS
Lone person
Couple
Couple with kids
Single with kids
Other
Lone person
69.7
.
.
.
30.3
Couple
.
100
.
.
.
Couple with kids
.
.
100
.
.
Single with kids
.
.
.
100
.
Other
55.2
.
.
.
44.8
All
18
7.1
23.1
42.4
9.4
Table 6. Prevalence and long-term characteristics of health condition groups, 1995.
Health Name
Condition
Group
Prevalence per 100 population
Prevalence as a LTC per 100 population
% LTC (either only or with acute bouts)
1
arthritis
14.72
14.58
99.05
2
asthma
11.30
11.09
98.10
3
diabetes
2.47
2.45
99.15
4
heart and circulatory
21.42
20.02
93.45
5
mental health
5.80
4.00
69.04
6
cancer
2.10
1.78
84.58
7
injury and poisoning
6.39
0.60
9.43
8
other muscular
17.01
12.48
73.36
9
other endocrine
10.47
7.81
74.66
10
respiratory
32.26
23.12
71.66
11
visual disturbances
0.27
0.19
72.43
12
other eye and adnexa
49.71
48.87
98.31
13
ear and mastoid
12.48
11.36
91.09
14
nervous system
3.50
2.65
75.81
15
infectious disease
3.73
1.03
27.66
16
digestive
10.56
7.66
72.60
17
dental
5.06
0.12
2.44
18
genito-urinary
6.38
3.60
56.34
19
skin and subcutaneous
9.87
3.80
38.45
20
blood diseases
2.05
1.67
81.67
21
pregancy and childbirth
0.88
0.15
17.05
22
sign and symptoms
24.24
7.30
30.12
23
preventative
31.92
0.02
0.06
24
congential
0.37
0.34
90.04
25
disability nec
1.16
1.12
96.55
26
unspecified symptoms
4.03
2.56
63.52
Table 7. Likelihood of having a short-term health condition.
Variable
Crude Odds Ratio
Comment on crude odds ratio
Odds Ratio (adjusted for age and sex)
Odds ratio (adjusted for age, sex and SAHS)
Age group (treated as a continuous variable)
1.129
Significant, appears to have close to linear relationship
Sex 1 Male vs 2 Female
0.60
Significant
Equivalent Income decile
Significant as a group but non linear
0 NA
0.759
0.753
0.707
1 1st decile
0.630
0.742
0.661
2
0.881
0.844
0.693
3
1.078
0.948
0.767
4
0.988
0.963
0.837
5
0.769
0.863
0.777
6
0.675
0.747
0.682
7
0.713
0.810
0.752
8
0.812
0.894
0.846
9
0.810
0.858
0.827
10 10th decile
1
1
1
Self Assessed Health Status
Significant as a group
0 NA
0.040
0.113
1Excellent
0.056
0.081
2
0.082
0.116
3
0.111
0.146
4
0.264
0.307
5 Poor
1
1
Marital Status
Significant as a group
1 Married
2.122
0.911
0.977
2 de facto
1.759
1.081
1.100
3 separated
2.186
0.992
0.986
4 divorced
2.697
1.040
1.084
5 widowed
6.316
1.258
1.259
6 never married
1
1
1
Income unit type
1 Married with dep kids
0.467
0.509
0.522
2 Married without dep kids
1.208
0.677
0.672
3 Single parent with dep kids
0.447
0.509
0.507
4 Single
0.749
0.569
0.555
5 Out of scope
0.707
0.641
0.623
9 Incomplete unit
1
1
1
Education
Significant
0 Not have higher
1
1
1
qualification
1.46
0.877
0.80
1 Has higher qualification
Labour force status
Significant as a group
0 NA
0.639
0.977
1.528
1 Unemployed
0.769
0.819
0.955
2 Employed
0.580
0.712
0.698
3 Not in labour force
1
1
1
Concession card holder (under 1995 rules)
Significant as a group
0 NA
0.630
1.245
0.080
1 Covered
2.525
1.744
1.494
2 Not covered
1.241
1.176
1.203
3 Don’t Know
1
1
1
Government benefit recipient 1 Yes vs 2 No
2.522
Significant
1.406
1.110
Table 8. Distribution of frequency of a doctor’s visit, 2001.
Frequency of Doctor’s Visit
HealthMod
No.%
NHS95
No.%
Absolute Difference
% Diff.
1
3,533,937
77.35
3,231,795
76.83
302,142
9.35
2
828,385
18.13
732,739
17.42
95,646
13.05
3
142,938
3.13
144,020
3.42
1,082
0.75
4
49,542
1.08
60,825
1.45
11,283
18.55
5
9,593
0.21
17,051
0.41
7,458
43.74
6
748
0.02
7,735
0.18
6,987
90.33
7
2,201
0.05
5,620
0.13
3,419
60.83
8
0
0.00
281
0.01
281
100.00
9 and over
1,213
0.03
6,507
0.15
5,294
81.36
Table 9. Primary reasons for a doctor’s visit, 2001.
Condition Group Name
HealthMod
NHS95
Absolute Difference
% Diff.
No.
%
No.
%
1
Arthritis
83,102
1.8
80,294
1.92
2,808
3
2
Asthma
92,614
2.0
85,203
2.04
7,411
9
3
Diabetes
50,058
1.1
36,357
0.87
13,701
38
4
Heart & Circulatory Dis.
222,438
4.9
248,960
5.95
26,522
11
5
Mental Health
237,551
5.2
101,921
2.44
135,630
133
6
Cancer
47,680
1.0
67,662
1.62
19,982
30
7
Injury and Poisoning
404,858
8.9
230,795
5.52
174,063
75
8
Other Musculoskeletal
484,887
10.6
258,942
6.19
225,945
87
9
Other endocrine
82,916
1.8
68,879
1.65
14,037
20
10
Respiratory
661,795
14.5
713,950
17.07
52,155
7
12
Eye and adnexa
70,612
1.5
71,758
1.72
1,146
2
13
Ear and mastoid
114,307
2.5
128,297
3.07
13,990
11
14
Nervous system
99,963
2.2
47,965
1.15
51,998
108
15
Infectious disease
145,684
3.2
103,486
2.47
42,198
41
16
Digestive
125,438
2.7
151,064
3.61
25,626
17
18
Genitor-urinary
85,042
1.9
131,022
3.13
45,980
35
19
Skin and subcutaneous
200,967
4.4
233,831
5.59
32,864
14
20
Blood disease
11,717
0.3
14,214
0.34
2,497
18
21
Pregnancy and childbirth
40,170
0.9
76,677
1.83
36,507
48
22
Signs and symptoms
273,554
6.0
252,137
6.03
21,417
8
23
Preventative
1,024,505
22.4
1,041,530
24.9
17,025
2
24
Congenital abnormality
7,624
0.2
4,127
0.1
3,497
85
25
Disability
204
0.0
2,383
0.06
2,179
91
26
Other
872
0.0
31,047
0.74
30,175
97
Table 10. Total doctor services, by broad type of service, 2001.
BTOS
Name
Medicare Aust.
HealthMod
Absolute Difference
% Difference
0101
Un-referred attendances – GP
91,952,523
95,998,090
4,045,567
4.4
0102
Un-referred attendances -enhanced primary care
323,056
503,860
180,804
56.0
0103
Un-referred attendances – other
8,059,031
9,321,414
1,262,383
15.7
0200
Specialist attendances
19,656,169
19,164,702
491,467
−2.5
0300
Obstetrics
1,470,160
1,459,591
10,569
−0.7
0400
Anaesthetics
2,140,921
1,979,525
161,396
−7.5
0700
Operations
6,039,494
6,726,906
687,412
11.4
0800
Assistance at operations
279,281
309,925
30,644
11.0
1000
Radiotherapy and therapeutic nuclear medicine
642,033
599,165
42,868
−6.7
1100
Miscellaneous
5,525,245
5,436,272
88,973
−1.6
Total
134,617,753
141,499,450
6,881,697
5.1