Medicaid Insurance in Old Age

Mariacristina De Nardi, Eric French and John Jones

American Economic Review, 2016, vol. 106, issue 11, 3480-3520

Abstract: The old age provisions of the Medicaid program were designed to insure retirees against medical expenses. We estimate a structural model of savings and medical spending and use it to compute the distribution of lifetime Medicaid transfers and Medicaid valuations across currently single retirees. Compensating variation calculations indicate that current retirees value Medicaid insurance at more than its actuarial cost, but that most would value an expansion of the current Medicaid program at less than its cost. These findings suggest that for current single retirees, the Medicaid program may be of the approximately right size.

JEL-codes: H51 I13 I18 I38 J14 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/aer.20140015
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Citations: View citations in EconPapers (66)

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Related works:
Working Paper: Medicaid Insurance in Old Age (2016)
Working Paper: Medicaid Insurance in Old Age (2013)
Working Paper: Medicaid insurance in old age (2012)
Working Paper: Medicaid Insurance in Old Age (2012)
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