The Health Benefits Simulation Model (HBSM): Methodology and Assumptions

The purpose of this document is to describe the data and methods used to develop the Lewin Group Health Benefits Simulation Model (HBSM). 

The Health Benefits Simulation Model is a micro-simulation model of the U.S. health care system. HBSM is a fully integrated platform for simulating policies ranging from narrowly defined Medicaid coverage expansions to broad-based reforms such as changes in the tax treatment of health benefits. The model is also designed to simulate the impact of numerous universal coverage proposals such as single-payer plans and employer mandates. The use of a single modeling system for these analyses helps assure that simulations of alternative proposals are executed with uniform and internally consistent methodologies.