Public Spillovers from Private Insurance Contracting: Physician Responses to Managed Care
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Abstract
Managed care is rebounding as more emphasis is placed on cost containment. These efforts may benefit consumers but challenge providers; however, empirical evidence on how supply-side managed care influences physicians is incomplete. We leverage a quasi-experiment in which a commercial insurer imposed a new contract regime on behavioral health providers in response to recent policy shifts. We demonstrate spillovers in the form of negative effects on local physician supply and positive effects on Medicare and Medicaid participation in areas where the insurer has market power. Commercially insured patients are also not obviously harmed but receive less intense services in some settings.Citation
Richards, Michael R., and D. Sebastian Tello-Trillo. 2019. "Public Spillovers from Private Insurance Contracting: Physician Responses to Managed Care." American Economic Journal: Economic Policy, 11 (4): 375-403. DOI: 10.1257/pol.20170441Additional Materials
JEL Classification
- G22 Insurance; Insurance Companies; Actuarial Studies
- I11 Analysis of Health Care Markets
- I13 Health Insurance, Public and Private
- I18 Health: Government Policy; Regulation; Public Health
- I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs
- J22 Time Allocation and Labor Supply
- J44 Professional Labor Markets; Occupational Licensing
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