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Expanded access to health care often leads to new diagnoses for previously undetected conditions. New diagnoses make it difficult to identify the causal effect of expanding health insurance on individuals with particular diagnoses: the newly diagnosed in the treatment group are likely to differ in unobserved ways from the control group. This paper provides two methods for dealing with this problem...
This paper estimates the causal effect of the expansion of Colombia's national prescription drug formulary to include five new types of insulin on the healthcare utilization and costs of type I diabetics and explores the mechanisms through which outpatient cost reductions are realized. We find that expanded coverage generates an increase in the cost of insulin for type I diabetics equal to 17% of...
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