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Federal Medicaid Assistance To States: Impact On Prenatal Care

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  • SWATI MUKERJEE
  • MICHAEL A. QUINN

Abstract

In the context of dramatically increasing U.S. health‐care costs, this paper contributes to an ongoing debate discussing proposals to replace the government’s current policy of matching state Medicaid spending with a block grant system. State‐level panel data analysis provides evidence that, ceteris paribus, increasing the federal matching formula has a negative impact on prenatal care. This aggregate result masks significant differences between high‐ and low‐spending states and appears to be driven by the high‐spending states thus implying that a 2‐track approach to Medicaid funding may be more appropriate than the current system. (JEL I1, H7)

Suggested Citation

  • Swati Mukerjee & Michael A. Quinn, 2008. "Federal Medicaid Assistance To States: Impact On Prenatal Care," Contemporary Economic Policy, Western Economic Association International, vol. 26(3), pages 380-397, July.
  • Handle: RePEc:bla:coecpo:v:26:y:2008:i:3:p:380-397
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    File URL: https://doi.org/10.1111/j.1465-7287.2007.00086.x
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    References listed on IDEAS

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    1. Diana S. Lien & William N. Evans, 2005. "Estimating the Impact of Large Cigarette Tax Hikes: The Case of Maternal Smoking and Infant Birth Weight," Journal of Human Resources, University of Wisconsin Press, vol. 40(2).
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    3. Mary Borg, 1989. "The Income-Fertility Relationship: Effect of the Net Price of a Child," Demography, Springer;Population Association of America (PAA), vol. 26(2), pages 301-310, May.
    4. Reichman, Nancy E. & Florio, Maryanne J., 1996. "The effects of enriched prenatal care services on Medicaid birth outcomes in New Jersey," Journal of Health Economics, Elsevier, vol. 15(4), pages 455-476, August.
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    6. Gary S. Becker & H. Gregg Lewis, 1974. "Interaction between Quantity and Quality of Children," NBER Chapters,in: Economics of the Family: Marriage, Children, and Human Capital, pages 81-90 National Bureau of Economic Research, Inc.
    7. 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.
    8. Duggan, Mark, 2004. "Does contracting out increase the efficiency of government programs? Evidence from Medicaid HMOs," Journal of Public Economics, Elsevier, vol. 88(12), pages 2549-2572, December.
    9. Cromwell, Jerry & Hurdle, Sylvia & Wedig, Gerard, 1986. "Impacts of Economic and Programmatic Changes on Medicaid Enrollments," The Review of Economics and Statistics, MIT Press, vol. 68(2), pages 232-240, May.
    10. Currie, Janet & Gruber, Jonathan & Fischer, Michael, 1995. "Physician Payments and Infant Mortality: Evidence from Medicaid Fee Policy," American Economic Review, American Economic Association, vol. 85(2), pages 106-111, May.
    11. Currie, Janet & Gruber, Jonathan, 1996. "Saving Babies: The Efficacy and Cost of Recent Changes in the Medicaid Eligibility of Pregnant Women," Journal of Political Economy, University of Chicago Press, vol. 104(6), pages 1263-1296, December.
    12. Baltagi, Badi H. & Wu, Ping X., 1999. "Unequally Spaced Panel Data Regressions With Ar(1) Disturbances," Econometric Theory, Cambridge University Press, vol. 15(06), pages 814-823, December.
    13. 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.
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    More about this item

    JEL classification:

    • I1 - Health, Education, and Welfare - - Health
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations

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