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Estimating Heterogeneous Take-up and Crowd-Out Responses to Current Medicaid Limits and Their Nonmarginal Expansions

Lara Shore-Sheppard, John Ham and Serkan Ozbeklik
Additional contact information
John Ham: University of Maryland, http://www.econ.umd.edu
Serkan Ozbeklik: Claremont McKenna College

No 2012-05, Department of Economics Working Papers from Department of Economics, Williams College

Abstract: We use a switching probit model and the income-limit-based structure of Medicaid eligibility for children to estimate treatment effects of Medicaid expansions not found in existing work on public insurance. In particular, we estimate rates of Medicaid take-up, private insurance coverage, and crowd-out for the currently eligible overall and for different demographic groups, and we estimate corresponding rates for children made eligible by a counterfactual nonmarginal increase in the Medicaid income limits. We find strikingly different rates across demographic groups, with individuals in traditionally less disadvantaged groups having a considerably lower response to the coverage for which they are eligible.

Keywords: Medicaid expansions; take-up; crowd-out; treatment effects; switching probit model; counterfactual policy analysis (search for similar items in EconPapers)
Pages: 44 pages
Date: 2012-11
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