The Expansionary and Contractionary Supply-Side Effects of Health Insurance
Eilidh Geddes and
Molly Schnell
No 31483, NBER Working Papers from National Bureau of Economic Research, Inc
Abstract:
We examine how health insurance expansions influence the entry and location decisions of health care providers. While it is generally expected that reductions in consumer prices following insurance expansions will prompt supply-side growth to meet increased demand (Arrow, 1963), we demonstrate both theoretically and empirically that expansions of insurance with low, regulated provider reimbursements (e.g., Medicaid) can instead lead the supply side to contract. Additionally, we show that expansions of insurance with high, market-based prices (e.g., private coverage) can reduce acceptance of public coverage even as they drive growth in the overall concentration of providers.
JEL-codes: H44 I11 I13 I14 L11 (search for similar items in EconPapers)
Date: 2023-07
New Economics Papers: this item is included in nep-com and nep-hea
Note: EH IO PE
References: Add references at CitEc
Citations: View citations in EconPapers (2)
Downloads: (external link)
http://www.nber.org/papers/w31483.pdf (application/pdf)
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:31483
Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w31483
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().