Disease‐based medical care expenditure indexes are currently of interest to measurement economists and have been the subject of several recent papers. These papers, however, produced widely different results for medical care inflation and also varied in the datasets and methods used, making...

I estimate the welfare, both gross and net, provided by the Medicare managed care program in 1999 through 2002. First, I estimate a model of demand for the benefits offered by managed care plans to Medicare beneficiaries. I then use the demand estimates to form estimates of welfare provided by...