Online Appendix for “Financial Incentives, Hospital Care, and Health Outcomes: Evidence from Fair Pricing Laws,” by Michael Batty and Benedic Ippolito

Although the FPLs we study are similar, there are several generalizable differences. The first is how the laws cap prices. Capping prices at (100-115 percent) the amount paid by public insurers, as opposed to private insurers (or cost), is significant not only because reimbursement from public payers is typically lower,1 but also because it is explicitly based upon a patient’s diagnosis rather than the medical services actually delivered. In contrast, most private insurers use a variety of payment mechanisms, including a non-trivial amount of fee-for-service reimbursement. Second, in addition to the limit on charges for medium income uninsured patients, several FPLs mandate free care for low income patients. Table A1 summarizes these FPL provisions by state.