NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Elisheva R. Stern

Department of Economics
Temple University
1301 Cecil B. Moore Avenue
Ritter Annex 873
Philadelphia, PA 19122-6091

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NBER Working Papers and Publications

January 2017Health Insurance Expansions and Provider Behavior: Evidence from Substance Use Disorder Providers
with Johanna Catherine Maclean, Ioana Popovici: w23094
We examine how substance use disorder (SUD) treatment providers respond to private insurance expansions induced by state equal coverage (‘parity’) laws for SUD treatment vis-à-vis general healthcare services. Economic theory suggests that such laws will lead to changes in provider behaviors. We use data on licensed specialty SUD treatment providers in the United States between 1997 and 2010 in a differences-in-differences analysis. During this period, 12 states implemented laws that require equality in coverage for SUD treatment. Following the passage of a state parity law we find that providers are less likely to participate in public markets, are less likely to offer price discounts to patients, and increase the quantity of healthcare provided. Further we find evidence that treatment int...
 
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