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Medicaid Policy Changes in Mental Health Care and Their Effect on Mental Health Outcomes

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  • Alison Cuellar
  • Sara Markowitz

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.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12232.

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Date of creation: May 2006
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Publication status: published as 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(01), pages 23-49, January.
Handle: RePEc:nbr:nberwo:12232

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  1. Kaestner, R. & Joyce, T. & Racine, A., 2001. "Medicaid eligibility and the incidence of ambulatory care sensitive hospitalizations for children," Social Science & Medicine, Elsevier, Elsevier, vol. 52(2), pages 305-313, January.
  2. Cameron,A. Colin & Trivedi,Pravin K., 2005. "Microeconometrics," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521848053.
  3. Dahlberg, Matz & Lundin, Douglas, 2005. "Antidepressants and the Suicide Rate: Is There Really a Connection?," Working Paper Series, Uppsala University, Department of Economics 2005:4, Uppsala University, Department of Economics.
  4. Kaestner, Robert & Dubay, Lisa & Kenney, Genevieve, 2005. "Managed care and infant health: an evaluation of Medicaid in the US," Social Science & Medicine, Elsevier, Elsevier, vol. 60(8), pages 1815-1833, April.
  5. Kristine A. Lykens & Paul A. Jargowsky, 2002. "Medicaid matters: children's health and medicaid eligibility expansions," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 21(2), pages 219-238.
  6. Jens Ludwig & Dave E. Marcotte, 2005. "Anti-depressants, suicide, and drug regulation," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 24(2), pages 249-272.
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Cited by:
  1. 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.
  2. 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, Elsevier, vol. 40(6), pages 723-731.
  3. Andrés, Antonio R. & Halicioglu, Ferda, 2010. "Determinants of suicides in Denmark: Evidence from time series data," Health Policy, Elsevier, Elsevier, vol. 98(2-3), pages 263-269, December.

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