Medicaid expansions for the working age disabled: Revisiting the crowd-out of private health insurance

Kathryn Wagner

Journal of Health Economics, 2015, vol. 40, issue C, 69-82

Abstract: Disabled individuals under 65 years old account for 15% of Medicaid recipients but half of all Medicaid spending. Despite their large cost, few studies have investigated the effects of Medicaid expansions for disabled individuals on insurance coverage and crowd-out of private insurance. Using an eligibility expansion that allowed states to provide Medicaid to disabled individuals with incomes less than 100% of the federal poverty level, I address these issues. Crowd-out estimates range from 49% using an ordinary least squares procedure to 100% using two-stage least-squares analysis. This potentially large degree of crowd-out could have fiscal implications for the Affordable Care Act which has greatly expanded Medicaid eligibility in 2014.

Keywords: Medicaid expansions; Health insurance; Crowd-out; Disability; Public programs (search for similar items in EconPapers)
JEL-codes: H4 I1 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (14)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jhecon:v:40:y:2015:i:c:p:69-82

DOI: 10.1016/j.jhealeco.2014.12.007

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