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Medicaid policy changes in mental health care and their effect on mental health outcomes

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  • Cuellar, Alison Evans
  • Markowitz, Sara

Abstract

In recent years, Medicaid has experienced a dramatic increase in spending on prescription drugs in general and psychotropic medications in particular. The purpose of this study is to examine the effects of increased Medicaid spending on psychotropic drugs on improving the mental health and well-being of participants at the population level. Specifically, we study the effect on outcomes that are strongly correlated with mood disorders, including depression and Attention Deficit/Hyperactivity disorder, controlling for concomitant increases in Medicaid eligibility thresholds and expansion into managed care for mental health services. Knowledge of the effects of changes in the Medicaid program is crucial to policymakers as they consider implementing and expanding mental health services. Our results show that increased spending on antidepressants and stimulants are associated with improvements in some outcomes, but not in others.

Suggested Citation

  • Cuellar, Alison Evans & Markowitz, Sara, 2007. "Medicaid policy changes in mental health care and their effect on mental health outcomes," Health Economics, Policy and Law, Cambridge University Press, vol. 2(1), pages 23-49, January.
    • Handle: RePEc:cup:hecopl:v:2:y:2007:i:01:p:23-49_00
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    References listed on IDEAS

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    6. Kaestner, Robert & Dubay, Lisa & Kenney, Genevieve, 2005. "Managed care and infant health: an evaluation of Medicaid in the US," Social Science & Medicine, Elsevier, vol. 60(8), pages 1815-1833, April.
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    Cited by:

    1. Andrés, Antonio R. & Halicioglu, Ferda & Yamamura, Eiji, 2011. "Socio-economic determinants of suicide in Japan," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(6), pages 723-731.
    2. Antonakakis, Nikolaos & Collins, Alan, 2018. "A suicidal Kuznets curve?," Economics Letters, Elsevier, vol. 166(C), pages 90-93.
    3. Hamersma, Sarah & Ye, Jinqi, 2021. "The effect of public health insurance expansions on the mental and behavioral health of girls and boys," Social Science & Medicine, Elsevier, vol. 280(C).
    4. Monica Deza & Johanna Catherine Maclean & Keisha T. Solomon, 2020. "Local Access to Mental Healthcare and Crime," NBER Working Papers 27619, National Bureau of Economic Research, Inc.
    5. Currie, Janet & Stabile, Mark & Jones, Lauren, 2014. "Do stimulant medications improve educational and behavioral outcomes for children with ADHD?," Journal of Health Economics, Elsevier, vol. 37(C), pages 58-69.
    6. Andrés, Antonio R. & Halicioglu, Ferda, 2010. "Determinants of suicides in Denmark: Evidence from time series data," Health Policy, Elsevier, vol. 98(2-3), pages 263-269, December.
    7. Dave E. Marcotte & Sara Markowitz, 2011. "A cure for crime? Psycho‐pharmaceuticals and crime trends," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 30(1), pages 29-56, December.
    8. Calamunci, Francesca & Lonsky, Jakub, 2022. "Highway to Hell? Interstate Highway System and Crime," IZA Discussion Papers 15800, Institute of Labor Economics (IZA).
    9. Monica Deza & Thanh Lu & Johanna Catherine Maclean, 2022. "Office‐based mental healthcare and juvenile arrests," Health Economics, John Wiley & Sons, Ltd., vol. 31(S2), pages 69-91, October.
    10. O’Flaherty, Brendan & Sethi, Rajiv, 2015. "Urban Crime," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1519-1621, Elsevier.
    11. Deza, Monica & Maclean, Johanna Catherine & Solomon, Keisha, 2022. "Local access to mental healthcare and crime," Journal of Urban Economics, Elsevier, vol. 129(C).

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    • I0 - Health, Education, and Welfare - - General

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