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Abstract
Medical foods, which fall in the gray area between food and drugs, are a necessity for persons with inborn errors of
metabolism. Being more expensive than regular foods, some U.S. states have mandated insurance companies to provide
coverage for the afflicted community. To investigate the legislative adoption process, this paper develops a
political economy model of medical food reimbursement and coverage policy. Analytical cross-state logit regression
models confirm the positive influences of metabolic clinics and the political clout of the afflicted community on the
probability of adoption. The countervailing interest of the insurance industry and the afflicted community were also
confirmed. Results suggest that efforts by medical food companies to influence the political process could yield food
market and distribution channel opportunities in states contemplating legislative adoption.