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The B.E. Journal of Economic Analysis & Policy

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

Lara D. Shore-Sheppard1

1Williams College,

Citation Information: The B.E. Journal of Economic Analysis & Policy. Volume 8, Issue 2, ISSN (Online) 1935-1682, DOI: 10.2202/1935-1682.2022, July 2008

Publication History

Published Online:
2008-07-19

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

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