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|Abstract:||© 2018 American Economic Association. Medicaid programs increasingly finance competing, capitated managed care plans rather than administering fee-for-service (FFS) programs. We study how the transition from FFS to managed care affects high- and low-cost infants (blacks and Hispanics, respectively). We find that black-Hispanic disparities widen-e.g., black mortality and preterm birth rates increase by 15 percent and 7 percent, respectively, while Hispanic mortality and preterm birth rates decrease by 22 percent and 7 percent, respectively. Our results are consistent with a risk-selection model whereby capitation incentivizes competing plans to offer better (worse) care to low- (high-) cost clients to retain (avoid) them in the future.|
|Citation:||Kuziemko, I, Meckel, K, Rossin-Slater, M. (2018). Does managed care widen infant health disparities? Evidence from Texas medicaid. American Economic Journal: Economic Policy, 10 (3), 255 - 283. doi:10.1257/pol.20150262|
|Pages:||255 - 283|
|Type of Material:||Journal Article|
|Journal/Proceeding Title:||American Economic Journal: Economic Policy|
|Version:||Final published version. Article is made available in OAR by the publisher's permission or policy.|
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