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Medicaid Expansions and Welfare Contractions: Offsetting Effects on Prenatal Care and Infant Health?

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Author Info
Janet Currie
Jeffrey Grogger

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Abstract

Evaluations of changes to the Medicaid program have focused on increases in the generosity of income cutoffs for Medicaid eligibility. Previous research shows that despite dramatic increases in the number of births paid for by the Medicaid program, women often enroll in Medicaid at the point of birth rather than before. States have addressed this problem by adopting administrative measures designed to simplify the Medicaid application process and encourage the use of prenatal care. At the same time, recent declines in welfare caseloads may effectively increasing administrative barriers to obtaining care. We examine the effects of these three types of policies (changes in income eligibility, administrative reforms, and changes in welfare caseloads) on the use of prenatal care and infant health using data from birth certificates covering all U.S. births between 1990 and 1996. We find that increases in income cutoffs increased the use of prenatal care, while decreases in welfare caseloads reduced the use of prenatal care, especially among blacks. The administrative reforms we consider had little effect. The changes in the utilization of prenatal care that were induced by increases in income eligibility cutoffs and decreases in welfare rates led to small but statistically significant reductions in the incidence of very low birthweight among whites.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7667.

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Date of creation: Apr 2000
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Handle: RePEc:nbr:nberwo:7667

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Find related papers by JEL classification:
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
I38 - Health, Education, and Welfare - - Welfare and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Mark R. Rosenzweig & T. Paul Schultz, 1982. "The Behavior of Mothers as Inputs to Child Health: The Determinants of Birth Weight, Gestation, and Rate of Fetal Growth," NBER Chapters, in: Economic Aspects of Health, pages 53-92 National Bureau of Economic Research, Inc. [Downloadable!]
  2. Grossman, Michael & Joyce, Theodore J, 1990. "Unobservables, Pregnancy Resolutions, and Birth Weight Production Functions in New York City," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 983-1007, October. [Downloadable!] (restricted)
    Other versions:
  3. Janet Currie & Lucia Nixon & Nancy Cole, 1993. "Restrictions on Medicaid Funding of Abortion: Effects on Pregnancy Resolutions and Birth Weight," NBER Working Papers 4432, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Blank, Rebecca M & Card, David E, 1991. "Recent Trends in Insured and Uninsured Unemployment: Is There an Explanation?," The Quarterly Journal of Economics, MIT Press, vol. 106(4), pages 1157-89, November. [Downloadable!] (restricted)
    Other versions:
  5. Currie, J. & Thomas, D., 1995. "Medical Care for Children, Public Insurance, Private Insurance, and Racial Differences in Utilization," Papers 95-08, RAND - Reprint Series.
  6. Jeffrey E. Harris, 1982. "Prenatal Medical Care and Infant Mortality," NBER Chapters, in: Economic Aspects of Health, pages 13-52 National Bureau of Economic Research, Inc. [Downloadable!]
  7. Moulton, Brent R., 1986. "Random group effects and the precision of regression estimates," Journal of Econometrics, Elsevier, vol. 32(3), pages 385-397, August. [Downloadable!] (restricted)
  8. Stephen Chaikind & Hope Corman, 1990. "The Special Education Costs of Low Birthweight," NBER Working Papers 3461, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Hope Corman & Theodore J. Joyce & Michael Grossman, 1987. "Birth Outcome Production Functions in the U.S," NBER Working Papers 1729, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Rebecca M. Blank & Patricia Ruggles, 1993. "When Do Women Use AFDC & Food Stamps? The Dynamics of Eligibility vs. Participation," NBER Working Papers 4429, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  11. George J. Borjas, 1994. "The Economics of Immigration," Journal of Economic Literature, American Economic Association, vol. 32(4), pages 1667-1717, December. [Downloadable!] (restricted)
  12. Moffitt, Robert, 1983. "An Economic Model of Welfare Stigma," American Economic Review, American Economic Association, vol. 73(5), pages 1023-35, December. [Downloadable!] (restricted)
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Cited by:
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  1. Marianne Bitler & Jonah Gelbach & Hilary Hoynes, 2004. "Welfare Reform and Health," NBER Working Papers 10549, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Olena Nizalova & Maria Vyshnya, 2009. "Evaluation of the Impact of the Mother and Infant Health Project in Ukraine," Discussion Papers 18, Kyiv School of Economics, revised Nov 2009. [Downloadable!]
  3. Partha Deb & Karen Smith Conway, 2002. "Is Prenatal Care Really Ineffective? Or, is the 'Devil' in the Distribution?," Hunter College Department of Economics Working Papers 02/2, Hunter College: Department of Economics. [Downloadable!]
    Other versions:
  4. Sankar Mukhopadhyay & Jeanne Wendel, 2008. "Are prenatal care resources distributed efficiently across high-risk and low-risk mothers?," International Journal of Health Care Finance and Economics, Springer, vol. 8(3), pages 163-179, September. [Downloadable!] (restricted)
  5. Robert Kaestner & Won Chan Lee, 2003. "The Effect of Welfare Reform on Prenatal Care and Birth Weight," NBER Working Papers 9769, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  6. Andrea Kutinova, 2006. "The Effects of Unemployment on Childbearing," Working Papers in Economics 06/12, University of Canterbury, Department of Economics. [Downloadable!]
  7. Catalina Amuedo-Dorantes & Kusum Mundra, 2003. "Impact of Immigration on Prenatal Care Use and Birth Weight: Evidence from California in the 1990's," American Economic Review, American Economic Association, vol. 93(2), pages 242-246, May. [Downloadable!]
  8. Charles L. Baum, 2004. "The Effects of Employment while Pregnant on Health at Birth," Working Papers 200408, Middle Tennessee State University, Department of Economics and Finance. [Downloadable!]
    Other versions:
  9. Mark Duggan & Fiona Scott Morton, 2004. "The Distortionary Effects of Government Procurement: Evidence from Medicaid Prescription Drug Purchasing," NBER Working Papers 10930, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Karen Smith Conway & Andrea Kutinova, 2006. "Maternal health: does prenatal care make a difference?," Health Economics, John Wiley & Sons, Ltd., vol. 15(5), pages 461-488. [Downloadable!]
  11. Anthony T. LoSasso & Thomas C. Buchmueller, 2002. "The Effect of the State Children's Health Insurance Program on Health Insurance Coverage," NBER Working Papers 9405, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  12. Robert Kaestner & Neeraj Kaushal, 2003. "Welfare Reform and Health Insurance Coverage of Low-Income Families," NBER Working Papers 10033, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  13. Todd Jewell & Patricia Triunfo & Rafael Aguirre, 2004. "Impacto de los cuidados Prenatales en el Peso al Nacer: El Caso del Uruguay," Documentos de Trabajo (working papers) 0704, Department of Economics - dECON. [Downloadable!]
  14. Marianne Bitler & Hilary W. Hoynes, 2006. "Welfare Reform and Indirect Impacts on Health," NBER Working Papers 12642, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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