The Effect of the Budget Cycle on Native American Health Outcomes

Abstract Indian Health Service provides healthcare for 2.5 million Alaskan Natives and Native Americans. However, health disparities between Native Americans and other groups have been widening. One important factor for this trend is funding. In this paper, I document the effect of funding constraints on mortality outcomes using fixed effects models. I find that, at the end of the fiscal year, deaths disproportionately increased for Native Americans by approximately 3.2 per 100,000. Specifically, I find evidence of increased heart attack, drug, diabetes, and flu mortality and that the effect is concentrated among older adults. These results show that it is crucial for there to be adequate resources in the healthcare system so that policies aimed at addressing health disparities can indeed improve health outcomes.