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Does Managed Care Hurt Health? Evidence from Medicaid Mothers

Author

Listed:
  • 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.

Suggested Citation

  • Anna Aizer & Janet Currie & Enrico Moretti, 2007. "Does Managed Care Hurt Health? Evidence from Medicaid Mothers," The Review of Economics and Statistics, MIT Press, vol. 89(3), pages 385-399, August.
  • Handle: RePEc:tpr:restat:v:89:y:2007:i:3:p:385-399
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    File URL: http://www.mitpressjournals.org/doi/pdf/10.1162/rest.89.3.385
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    Citations

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    Cited by:

    1. Amarante, Veronica & Manacorda, Marco & Miguel, Edward & Vigorito, Andrea, 2011. "Do Cash Transfers Improve Birth Outcomes? Evidence from Matched Vital Statistics, Social Security and Program Data," IZA Discussion Papers 6231, Institute for the Study of Labor (IZA).
    2. repec:aea:jecper:v:31:y:2017:i:4:p:3-22 is not listed on IDEAS
    3. Lincoln Groves, 2015. "Still “Saving Babies”? The Impact of Child Medicaid Expansions on High School Completion Rates," Center for Policy Research Working Papers 181, Center for Policy Research, Maxwell School, Syracuse University.
    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.
    5. Lindsey Woodworth, 2016. "A Leak in the Lifeboat: The effect of Medicaid managed care on the vitality of safety-net hospitals," Journal of Regulatory Economics, Springer, vol. 50(3), pages 251-270, December.
    6. Hope Corman & Dhaval M. Dave & Nancy E. Reichman, 2017. "Evolution of the Infant Health Production Function," NBER Working Papers 24131, National Bureau of Economic Research, Inc.
    7. Almond, Douglas & Currie, Janet, 2011. "Human Capital Development before Age Five," Handbook of Labor Economics, Elsevier.
    8. Laun, Lisa & Thoursie, Peter Skogman, 2014. "Does privatisation of vocational rehabilitation improve labour market opportunities? Evidence from a field experiment in Sweden," Journal of Health Economics, Elsevier, vol. 34(C), pages 59-72.
    9. Marton, James & Yelowitz, Aaron & Talbert, Jeffery C., 2014. "A tale of two cities? The heterogeneous impact of medicaid managed care," Journal of Health Economics, Elsevier, vol. 36(C), pages 47-68.
    10. James Marton & Aaron Yelowitz, 2015. "Health insurance generosity and conditional coverage: Evidence from medicaid managed care in Kentucky," Southern Economic Journal, Southern Economic Association, vol. 82(2), pages 535-555, October.
    11. Apostolova-Mihaylova, Maria & Yelowitz, Aaron, 2015. "Health Insurance, Fertility, and the Wantedness of Pregnancies: Evidence from Massachusetts," MPRA Paper 61237, University Library of Munich, Germany.
    12. Thomas Buchmueller & John C. Ham & Lara D. Shore-Sheppard, 2015. "The Medicaid Program," NBER Chapters,in: Economics of Means-Tested Transfer Programs in the United States, volume 1, pages 21-136 National Bureau of Economic Research, Inc.
    13. Ji Yan, 2017. "Healthy Babies: Does Prenatal Care Really Matter?," Working Papers 17-09, Department of Economics, Appalachian State University.

    More about this item

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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