Some economics of mental health 'carve-outs'.

@article{Frank1996SomeEO,
  title={Some economics of mental health 'carve-outs'.},
  author={Richard Gabriel Frank and Haiden A. Huskamp and Thomas G. McGuire and Joseph Newhouse},
  journal={Archives of general psychiatry},
  year={1996},
  volume={53 10},
  pages={933-7}
}
We discuss the rationale for benefit carve-out contracts in general and for mental health and substance abuse in particular. We focus on the control of adverse selection as a principal explanation and find that this is consistent with the wide-spread use of sole-source contracting with periodic rebidding. We also find that some degree of risk sharing is common; we interpret this as a method of balancing cost-containment incentives with incentives to maintain access and quality on unmeasured… CONTINUE READING

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