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Title: Analysis of the Potential Cost Savings in Medicaid for Mental Health Services in Virginia

Citation Type: Working Paper

Publication Year: 2013

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Abstract: We estimate the effects of various factors on service provision and unit cost by public mental health providers using administrative data from Virginia and find that, while there is significant variation in service provision levels and unit costs across providers, it is difficult to explain much of the variation. Especially with respect to cost results, this suggest some potential for cost savings but also a need for better data on cost determinants. We also use MEPS data to show that individuals with Medicaid health insurance use more mental health services than those with private insurance but at significantly lower unit costs. We suggest reasons why this might occur and what those reasons imply about methods to reduce Medicaid expenditures in Virginia and other states.

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Authors: Stern, Steven; Guo, Dina; Brown, Caruso

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Institution: University of Virginia

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Publisher Location: Charlottesville, VA

Data Collections: IPUMS USA

Topics: Health

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