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The Economics of Medicaid Dental Care: How Global Budget Methods Affect Reimbursement

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  • Joseph Squillace

Abstract

The primary factor in level of participation by dentists in Medicaid and State Children's Health Insurance (SCHIP) programs is the level of reimbursement received. The purpose of this article is to describe how the use of the global budget method used by managed care vendors, or their subcontractors, discourages dentists from participating in Medicaid/SCHIP programs, ultimately decreasing access to oral health care for the lower‐income populations. The author posits that the global budget method is misapplied to Medicaid/SCHIP systems, and the experience of Missouri is used to demonstrate problems in reimbursement to dental providers.

Suggested Citation

  • Joseph Squillace, 2009. "The Economics of Medicaid Dental Care: How Global Budget Methods Affect Reimbursement," Poverty & Public Policy, John Wiley & Sons, vol. 1(2), pages 1-20, July.
    • Handle: RePEc:wly:povpop:v:1:y:2009:i:2:p:1-20
    DOI: 10.2202/1944-2858.1008
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    References listed on IDEAS

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    1. Mougeot, Michel & Naegelen, Florence, 2005. "Hospital price regulation and expenditure cap policy," Journal of Health Economics, Elsevier, vol. 24(1), pages 55-72, January.
    2. Fan, Chinn-Ping & Chen, Kong-Pin & Kan, Kamhon, 1998. "The design of payment systems for physicians under global budget - an experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 34(2), pages 295-311, February.
    3. repec:mpr:mprres:3868 is not listed on IDEAS
    4. Miaw-Chwen Lee & Andrew M. Jones, 2004. "How did Dentists Respond to the Introduction of Global Budgets in Taiwan? An Evaluation Using Individual Panel Data," International Journal of Health Economics and Management, Springer, vol. 4(4), pages 307-326, December.
    5. Franz Benstetter & Achim Wambach, 2001. "Strategic Interaction in the Market for Physician Services: The Treadmill Effect in a Fixed Budget System," CESifo Working Paper Series 427, CESifo.
    6. Mougeot, Michel & Naegelen, Florence, 2005. "Hospital price regulation and expenditure cap policy," Journal of Health Economics, Elsevier, vol. 24(1), pages 55-72, January.
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