Area Poverty Effects on Local Health Care Costs: An Analysis of Mississippi

Brandon Roberts

Review of Policy Research, 2006, vol. 23, issue 1, 223-233

Abstract: This article examines the relationship of area medical costs and poverty in Mississippi. Using a fixed‐effects model and Medicare expenditures, the results indicate that an addition of one percentage point in area poverty increases expected per enrollee expenditures by 0.90%. These figures imply that successful poverty amelioration efforts could yield substantial reductions in medical costs over time. The estimates suggest that a one‐percentage‐point reduction in poverty could accrue to a statewide savings of $510 million in medical costs over a 5‐year time period.

Date: 2006
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https://doi.org/10.1111/j.1541-1338.2006.00194.x

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Persistent link: https://EconPapers.repec.org/RePEc:bla:revpol:v:23:y:2006:i:1:p:223-233

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