How Does Medicaid Managed Care Affect Provider Behavior? New Evidence from Spillovers on Private Health Care

How Does Medicaid Managed Care Affect Provider Behavior? New Evidence from Spillovers on Private Health Care PDF Author: Ajin Lee
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Languages : en
Pages : 0

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Book Description
Medicaid is increasingly provided by private managed care plans. I investigate the staggered rollout of mandates across counties in New York, which required Medicaid beneficiaries to enroll in a private managed care plan. I find improvements following the mandate, as evidenced by increased routine office visits and child immunizations for Medicaid beneficiaries. Routine office visits similarly increased for the privately insured, especially in low-income areas, suggesting that physicians updated their overall practice styles when the mandate affected a large share of their patients. The same-signed spillover suggests that managed care directly shifted provider practice styles instead of simply sorting patients toward certain providers. Consistent with this result, I show that managed care expanded Medicaid beneficiaries' access to physicians and reduced market concentration relative to the public system.