Date of Award

Fall 1-5-2024

Document Type

Thesis

Degree Name

Master of Arts (MA)

Department

Economics

First Advisor

Partha Deb

Second Advisor

Jessica Van Parys

Academic Program Adviser

Karna Basu

Abstract

The goal of a budget cap on healthcare is to constrain total healthcare expenditure without compromising quality. This paper examines the impacts of budget capping on health and behavioral health outcomes, exploiting the completed Maryland All-Payer Model and the ongoing, extensional Maryland Total Cost of Care model, both of which capped healthcare budgets in Maryland. I use data from 2011-2021 surveys of the Behavioral Risk Factor Surveillance system and generalized difference-in-difference regression models to find that budget capping improves health and behavioral health outcomes with a greater favorable effect during the Maryland Total Cost of Care model.

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