Do Insurers Risk-Select Against Each Other ? Evidence from Medicaid and Implications for Health Reform ∗

@inproceedings{Kuziemko2014DoIR,
  title={Do Insurers Risk-Select Against Each Other ? Evidence from Medicaid and Implications for Health Reform ∗},
  author={Ilyana Kuziemko and Katherine Meckel and Maya Rossin-Slater},
  year={2014}
}
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 versus 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% while the Hispanic mortality decreases by 22%—and care worsens for blacks. Additionally, black… CONTINUE READING

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