Do Insurers Risk-Select Against Each Other? Evidence from Medicaid Managed Care∗
نویسندگان
چکیده
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 highand low-cost infants (blacks and Hispanics, respectively). We find that blackHispanic disparities widen—e.g., black mortality and pre-term birth rates increase by 15% and 7%, respectively, while Hispanic mortality and pre-term birth rates decrease by 22% and 7%, respectively. Additionally, black birth rates fall slightly. 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. JEL Codes: I11, I18, J13
منابع مشابه
Do Insurers Risk-Select Against Each Other? Evidence from Medicaid and Implications for Health Reform∗
Increasingly in U.S. public insurance programs, the state finances competing, capitated health plans rather than using a fee-for-service (FFS) model. We study how highand low-cost infants (blacks and Hispanics, respectively) are affected by the transition from FFS to Medicaid managed care (MMC). We find that black-Hispanic infant health disparities widen—e.g., black mortality increases by 12% w...
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