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Does Managed Care Hurt Health? Evidence from Medicaid Mothers

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Author Info

  • Anna Aizer

    (Brown University and NBER)

  • Janet Currie

    (Columbia University, NBER, and IZA)

  • Enrico Moretti

    (University of California, Berkeley, NBER, CEPR, and IZA)

Abstract

Most Americans are now in some form of managed care plan that restricts access to services in order to reduce costs. It is difficult to determine whether these restrictions affect health because individuals and firms self-select into managed care. We investigate the effect of managed care using a California law that required some pregnant women on Medicaid to enter managed care. We use a unique longitudinal database of California births in which we observe changes in the regime faced by individual mothers between births. We find that Medicaid managed care reduced the quality of prenatal care and increased low birth weight, prematurity, and neonatal death. Copyright by the President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/rest.89.3.385
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Bibliographic Info

Article provided by MIT Press in its journal The Review of Economics and Statistics.

Volume (Year): 89 (2007)
Issue (Month): 3 (August)
Pages: 385-399

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Handle: RePEc:tpr:restat:v:89:y:2007:i:3:p:385-399

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Web page: http://mitpress.mit.edu/journals/

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Web: http://mitpress.mit.edu/journal-home.tcl?issn=00346535

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Cited by:
  1. Amarante, Veronica & Manacorda, Marco & Miguel, Edward & Vigorito, Andrea, 2012. "Do Cash Transfers Improve Birth Outcomes? Evidence from Matched Vital Statistics, Social Security and Program Data," CEPR Discussion Papers 8740, C.E.P.R. Discussion Papers.
  2. Jönsson, Lisa & Skogman Thoursie, Peter, 2012. "Does privatisation of vocational rehabilitation improve labour market opportunities? Evidence from a field experiment in Sweden," Working Paper Series 2012:2, IFAU - Institute for Evaluation of Labour Market and Education Policy.
  3. Marton, James & Yelowitz, Aaron & Talbert, Jeffrey, 2014. "A Tale of Two Cities? The Heterogeneous Impact of Medicaid Managed Care," MPRA Paper 54105, University Library of Munich, Germany.
  4. Christopher C. Afendulis & Michael E. Chernew & Daniel P. Kessler, 2013. "The Effect of Medicare Advantage on Hospital Admissions and Mortality," NBER Working Papers 19101, National Bureau of Economic Research, Inc.

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