Anna V. Chorniy
173 Julis Romo Rabinowitz Bld., Princeton Universi
Princeton NJ 08544
NBER Working Papers and Publications
|October 2017||Exploding Asthma and ADHD Caseloads: The Role of Medicaid Managed Care|
with Janet Currie, Lyudmyla Sonchak: w23983
In the U.S., nearly 11% of school-age children have been diagnosed with ADHD, and approximately 10% of children suffer from asthma. In the last decade, the number of children diagnosed with these conditions has inexplicably been on the rise. This paper proposes a novel explanation of this trend. First, the increase is concentrated in the Medicaid caseload nationwide. Second, nearly 80% of states transitioned their Medicaid programs from fee-for-service (FFS) reimbursement to managed care (MMC) by 2016. Using Medicaid claims from South Carolina, we show that this change contributed to the increase in asthma and ADHD caseloads. Empirically, we rely on exogenous variation in MMC enrollment due a change in the “default” Medicaid plan from FFS or MMC, and an increase in the availability of MMC....