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Impact of Augmented Prenatal Care on Birth Outcomes of Medicaid Recipients in New York City

  • Theodore Joyce

I examine whether New York State's Prenatal Care Assistance Program (PCAP) is associated with greater use of prenatal services and improved birth outcomes. PCAP is New York State's augmented prenatal care initiative that became a part of the Medicaid program after expansion in income eligibility thresholds in January, 1990. Data are from the linkage of Medicaid administrative files with New York City birth certificates (N=23,243). For women on cash assistance, I find PCAP is associated with a 20 percent increase in the likelihood of enrollment in WIC, an increase in mean birth weight of 35 grams and a 1.3 percentage point drop in the rate of low birth weight. Associations between PCAP and improved birth outcomes for women on medical assistance are similar, but appear contaminated by selection bias. Reductions in newborn costs associated with PCAP participation are modest, between $100-$300 dollars per recipient, and are insufficient to offset program expenditures.

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File URL: http://www.nber.org/papers/w6029.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6029.

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Date of creation: May 1997
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Publication status: published as Journal of Health Economics, Vol. 18, no. 1 (January 1999): 31-67
Handle: RePEc:nbr:nberwo:6029
Note: HE
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  1. Theodore Joyce, 1997. "Impact of Augmented Prenatal Care on Birth Outcomes of Medicaid Recipients in New York City," NBER Working Papers 6029, National Bureau of Economic Research, Inc.
  2. Robert A. Moffitt, 1996. "Selection Bias Adjustment in Treatment-Effect Models as a Method of Aggregation," NBER Technical Working Papers 0187, National Bureau of Economic Research, Inc.
  3. Gruber, J. & Currie, J., 1994. "Saving Babies: The Efficacy and Cost of Recent Expansions of Medicaid Eligibility for Pregnant Women," Working papers 94-11, Massachusetts Institute of Technology (MIT), Department of Economics.
  4. Kaestner, Robert & Joyce, Theodore & Wehbeh, Hassan, 1996. "The Effect of Maternal Drug Use on Birth Weight: Measurement Error in Binary Variables," Economic Inquiry, Western Economic Association International, vol. 34(4), pages 617-29, October.
  5. Barbara Devaney & Linda Bilheimer & Jennifer Schore, 1992. "Medicaid costs and birth outcomes: The effects of prenatal WIC participation and the use of prenatal care," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 11(4), pages 573-592.
  6. Theodore Joyce & Andrew D. Racine & Sandra McCalla & Hassan Wehbeh, 1994. "The Impact of Prenatal Exposure to Cocaine on Newborn Costs and Length of Stay," NBER Working Papers 4673, National Bureau of Economic Research, Inc.
  7. Murphy, Kevin M & Topel, Robert H, 2002. "Estimation and Inference in Two-Step Econometric Models," Journal of Business & Economic Statistics, American Statistical Association, vol. 20(1), pages 88-97, January.
  8. 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.
  9. J.D. Angrist & Guido W. Imbens & D.B. Rubin, 1993. "Identification of Causal Effects Using Instrumental Variables," NBER Technical Working Papers 0136, National Bureau of Economic Research, Inc.
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