Wednesday, November 27, 2013

Older people sign up for coverage, but program needs the ‘young invincibles’

Affordable health care act is a hot topic in the country either for political or technological reasons.  As a result, we find many articles and blogs in almost every publishing medium expressing myriad of opinions on the same. In order to give credibility to their articles, many of these authors have thrown in data, graphs and any statistic they could lay their hands on without understanding relevance of the data to their articles and if the data supports the theory presented in their articles.
The article I am discussing today was on the coverage page of Seattle times dated 16th Nov 2013 1 and is about age demographics that is signing up for healthcare on Washington health exchange. This article stirred my interest as it was not only on a hot topic but also was very colorful with multiple charts, maps and data points.  Being a keen student of statistics, I set out on a mission to read, understand and analyze the data.
The author started the article with a conclusion that younger people are not signing up for health care and majority of the new signees are older people. He analyzed the numbers on Washington state health exchange website and provided the following graphs to justify his statement. He further went on to explain the story of a 27 year old young man who signed up for health care and his reasons for the same.

After reading the article and looking at the charts, I found that data was not corroborating the conclusion. The author’s statement that younger people are not signing up for coverage is not correct. Younger people may have not signed up for health plans sold by private insurers (Based on the bar charts, even that number is around 30% which is not small) as they have for Medicaid. In fact, majority of the people that signed up for Medicaid are young (around 57%).  Also, these graphs are based on the data for the month of October and size of the samples is completely different. The chart for private insurance is based on a sample of 6351 signees and the chart for Medicaid is based on a sample of 51,379 signees. If we combine data from these two sources, assume that 0-34 years age group is young population and 55 and above is older population, we find that for every older person that has signed up for insurance, three younger people have signed up ( ~ 10,000 older people to 31,200 younger people). Also the author did a basic rounding error where the sum of all percentages in the first chart is not equal to hundred. When you compare the total signees in this article with the total population of Washington State (6,897,012 2), the numbers and charts seem even more suspect.
The author also sprinkled in  details about various plans and percentage of people that signed up for these plans, number of signups by county, total number of web visits, percentage of women who signed up for these plans, etc.  
·         The data about various plans and percentage of people that signed up is great, but it is not relevant to the article or its conclusion.
·         The data about number of visitors to website does not contain age groups of the visitors to help us analyze the age demographics.
·         The map indicates the King county had the most new signups followed by Pierce and Snohomish counties. Even though this data is not relevant to the article, I did a quick correlation analysis on the population in these counties 3 against the number of new signups and found a strong correlation (0.97) among them with Spokane county being an outlier. Hence, the number of new signups is directly proportional to the population the county.

County
Population(In 1000s)
Signups (In %)
King
1,950
25.1
Pierce
795
10.9
Snohomish
713
8.7
Spokane
471
10.2
Clark
425
6.5

Population
Signups
Population
1

Signups
0.975942
1

In conclusion, the article has colorful charts and good data points. But, statistically it is inaccurate and presents a wrong picture of the healthcare signups.


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