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The Effect of Prescription Drug Coverage on Mortality: Evidence from Medicaid Implementation

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  • Clayton, Denise Hammock

Abstract

This paper estimates the effect of Medicaid prescription drug spending on mortality. I use the group- and state-specific roll out of Medicaid drug coverage to isolate plausibly exogenous variation in drug expenditures. I find that a $1 increase in Medicaid drug expenditures per resident reduces mortality from internal causes by 2.0 deaths per hundred thousand, a decline of 0.23%. I find relatively large effects for: (1) medically-treated diseases which pose an immediate risk of death, (2) impoverished areas which received a disproportionate share of state Medicaid dollars, and (3) areas with a high ratio of medical to surgical physicians.

Suggested Citation

  • Clayton, Denise Hammock, 2019. "The Effect of Prescription Drug Coverage on Mortality: Evidence from Medicaid Implementation," Journal of Health Economics, Elsevier, vol. 63(C), pages 100-113.
    • Handle: RePEc:eee:jhecon:v:63:y:2019:i:c:p:100-113
    DOI: 10.1016/j.jhealeco.2018.10.003
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    Cited by:

    1. Borgschulte, Mark & Vogler, Jacob, 2020. "Did the ACA Medicaid expansion save lives?," Journal of Health Economics, Elsevier, vol. 72(C).
    2. Deiana Claudio & Giua Ludovica, 2021. "The Intended and Unintended Effects of Opioid Policies on Prescription Opioids and Crime," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(2), pages 751-792, April.
    3. S. Balia & R. Brau & S. Pau, 2025. "One plus one makes less than two? Consolidation policies and mortality in the Italian NHS," Working Paper CRENoS 202502, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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