Faculty Articles

Title

Health Insurance Expansions and Provider Behavior: Evidence from Substance Use Disorder Providers

ISBN or ISSN

1537-5285

Publication Title

The Journal of Law and Economics

Volume

61

Issue

2

Publication Date / Copyright Date

2-2018

First Page

279

Last Page

310

Publisher

University of Chicago Press

DOI Number

10.3386/w23094

Abstract

We examine how substance use disorder (SUD) treatment providers respond to private insurance expansions induced by state equal coverage (‘parity’) laws for SUD treatment vis-à-vis general healthcare services. Economic theory suggests that such laws will lead to changes in provider behaviors. We use data on licensed specialty SUD treatment providers in the United States between 1997 and 2010 in a differences-in-differences analysis. During this period, 12 states implemented laws that require equality in coverage for SUD treatment. Following the passage of a state parity law we find that providers are less likely to participate in public markets, are less likely to offer price discounts to patients, and increase the quantity of healthcare provided. Further we find evidence that treatment intensity declines following passage of a parity law and heterogeneity in effects across ownership status.

Disciplines

Medicine and Health Sciences | Pharmacy and Pharmaceutical Sciences

Keywords

private insurance, substance use disorder, treatment providers

Peer Reviewed

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