Stemming the Tide? The Effect of Expanding Medicaid Eligibility On Health Insurance Coverage

Lara D. Shore-Sheppard
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Lara D. Shore-Sheppard: Williams College

The B.E. Journal of Economic Analysis & Policy, 2008, vol. 8, issue 2

Abstract: Despite considerable research, there is little consensus about the impact of Medicaid eligibility expansions for low-income children. In this paper, I reexamine the expansions’ impact on Medicaid take-up and private insurance “crowd-out” by investigating a number of critiques leveled at the seminal work of Cutler and Gruber (1996) and extending the analysis to include further expansions of Medicaid. I find that accounting for most critiques of Cutler and Gruber does not substantively affect their estimates of sizable take-up and crowd-out. However, controlling for age-specific time trends does substantially reduce the estimated take-up and crowd-out and recovers results close to those found elsewhere in the literature. I also find that later expansions generated much lower rates of take-up and crowding out.

Keywords: Medicaid; health insurance; crowd-out; children (search for similar items in EconPapers)
JEL-codes: I18 I38 (search for similar items in EconPapers)
Date: 2008

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Persistent link: http://EconPapers.repec.org/RePEc:bpj:bejeap:v:8:y:2008:i:2:n:6

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