FEDERAL MEDICAID ASSISTANCE TO STATES: IMPACT ON PRENATAL CARE

Swati Mukerjee and Michael A. Quinn

Contemporary Economic Policy, 2008, vol. 26, issue 3, 380-397

Abstract: In the context of dramatically increasing U.S. health‐care costs, this paper contributes to an ongoing debate discussing proposals to replace the government’s current policy of matching state Medicaid spending with a block grant system. State‐level panel data analysis provides evidence that, ceteris paribus, increasing the federal matching formula has a negative impact on prenatal care. This aggregate result masks significant differences between high‐ and low‐spending states and appears to be driven by the high‐spending states thus implying that a 2‐track approach to Medicaid funding may be more appropriate than the current system. (JEL I1, H7)

Date: 2008
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https://doi.org/10.1111/j.1465-7287.2007.00086.x

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