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The impact of the managed care backlash on health care spending

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  • Maxim L. Pinkovskiy

Abstract

The health spending slowdown associated with the managed care revolution in the 1990s suggests that managed care may have been successful in controlling health care spending. I exploit the passage of state regulation during the “managed care backlash” as well as geographic variation in managed care intensity to measure the impact of managed care on spending. I find that restricting managed care causes a large and significant increase in hospital spending, which cannot be explained by changes in hospital market concentration, other regulatory activity, and multiple other possible explanations. I also do not find effects of the backlash on mortality.

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  • Maxim L. Pinkovskiy, 2020. "The impact of the managed care backlash on health care spending," RAND Journal of Economics, RAND Corporation, vol. 51(1), pages 59-108, March.
    • Handle: RePEc:bla:randje:v:51:y:2020:i:1:p:59-108
    DOI: 10.1111/1756-2171.12306
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