@article {665060,
	title = {A Change of Plans: Switching Costs in the Procurement of Health Insurance},
	year = {Submitted},
	abstract = {The provision of public health insurance through regulated markets requiresa dynamic procurement of insurers over time. I study switching costs betweeninsurers, exploiting non-renewed contracts with incumbent insurers after a statebid in Medicaid managed care. Using a difference-in-differences framework, Ifind that beneficiaries that are forced to switch health plans after these bids havefewer visits to primary care physicians and lower utilization of prescription drugs,including for chronic conditions. Children, non-whites, and sicker switchers havemore preventable hospital admissions. In the year following the exit, insurers{\textquoteright}spending on switchers is 4\% lower than the pre-exit baseline. Changes in thenetwork of providers and in drug formularies may serve as mechanisms.in drug formularies {\textemdash} all may serve as mechanisms.},
	author = {Politzer, Eran}
}
