ABSTRACT: During the late 1990s, there was a substantial cultural, media and legal backlash against the cost-containment practices of managed care organizations (particularly, HMOs). Most states passed a variety of laws in this period that restricted the cost-cutting measures that managed care firms could use. I exploit panel variation in the passage of these regulations across states and over time to investigate the effects of the managed care backlash, as proxied by this legislation, on health care cost growth. I find that the backlash had a strong effect on health care costs, and can statistically explain much of the rise in health spending as a share of U.S. GDP between 1993 and 2005 (amounting to 1% – 1.5% of GDP). I also investigate the effects of the managed care backlash on intensity of care, hospital salaries and technology adoption. I conclude that managed care was largely successful in keeping health care costs on a sustainable path relative to the size of the economy.
I'm an Economics Ph.D. student at UC Berkeley focusing on public finance topics at the intersection of labor economics and macroeconomics. My current research focus is on the interaction of corporate taxation, firm location decisions, and the location and scale of economic activity. You can follow me on twitter @omzidar.
- 2012 Alan Auerbach Baumol's cost books Brad Delong Budget Capital capital income taxation Capital Taxation Christy Romer College Corporate Taxes Crime david autor David Card debt Dylan Matthews Economic Policy Education Emmanuel Saez Enrico Moretti Europe Finance Fiscal Cliff Fiscal Policy Government Government Spending Great Recession Growth Hamilton Project Healthcare Healthcare Costs Health Insurance Housing Housing Finance Immigration Incidence inequality inflation Innovation Investment Jeremy Stein Jobs Justin Wolfers Labor Labor Markets larry summers Laura Tyson Local Labor Markets Macroeconomics Math Medicare Middle Class mobility Monetary Policy NYTimes Obama Pat Kline Paul Krugman Politics Productivity Raj Chetty Regulation Robots Romney SNAP Spending States Stimulus Tax Cuts for Whom Taxes Tax Reform Unemployment Wages Yuriy Gorodnichenko
- Declining Reliance on State Corporate Tax Revenues
- Average Property Tax as a Share of Home Value, 2007-2011
- Washington just awarded the largest state tax subsidy in U.S. history
- Boosting Growth: The Spending and Debt Responses to Minimum Wage Hikes
- The Long Short Run
- On the Origin of States: Stationary Bandits and Taxation in Eastern Congo
- Some Local Economic Statistics Eliminated Due to 2013 Budget Sequester
- Do Financial Frictions Amplify Fiscal Policy? Evidence from Business Investment Stimulus
- RT @BruceBartlett: Council of Economic Advisers report on extended unemployment insurance. whitehouse.gov/sites/default/… 1 hour ago
- What’s the Problem With Advanced Economies? by Kenneth Rogoff via @ProSyn #oped po.st/K96Nly via @po_st 11 hours ago
- Washington Center for Equitable Growth | “Microfoundations”: I Do Not Think That Word Means What You Think It Means: equitablegrowth.org/2013/12/04/104… 11 hours ago
- RT @dynarski: In case you are an economist yet are not dorky enuf: Fantasy league for academic economists. Run your own department! http://… 13 hours ago
- The best speech Obama has given on the economy washingtonpost.com/blogs/wonkblog… 20 hours ago