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Open Access. Powered by Scholars. Published by Universities.®

2009

Health Law and Policy

Greg Heller

Articles 1 - 1 of 1

Full-Text Articles in Law

The Cost-Shifting Consequences Of Failed Managed Care Regulation: Some Lessons From Pennsylvania’S Experience With Addiction Treatment, Greg Heller Jan 2009

The Cost-Shifting Consequences Of Failed Managed Care Regulation: Some Lessons From Pennsylvania’S Experience With Addiction Treatment, Greg Heller

Greg Heller

When managed care companies fail to pay for medical treatment, the costs of treatment are sometimes shifted to the public. This phenomenon is particularly common in the area of addiction treatment, because the incentives and opportunities for cost shifting are so great. This article sets forth the results of an empirical analysis that examines the extent of cost shifting for addiction treatment in Pennsylvania. Pennsylvania has a strong law mandating coverage for addiction treatment, and much of the cost shifting was in violation of Pennsylvania law. This behavior was almost entirely missed by regulators. The article explores these regulatory failures, …