Public Health Insurance and Medical Spending: Evidence from the ACA Medicaid Expansion

Individuals’ medical spending has both necessary and discretionary components, which are not, however, separately observable. This paper studies ways to improve upon existing public health insurance policies by using a framework where both the discretionary and necessary components of medical spending are explicitly modeled. First, using a simple theoretical framework, the paper shows that the key to reducing discretionary medical spending is to introduce a trade-off between nonmedical and medical consumption. Next, using a rich quantitative life-cycle model, the paper shows that this trade-off can be successfully implemented by introducing an option to substitute public health insurance with cash transfers. (JEL D91, G22, H51, I13, I18, I38)

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The Impact of Expanding Public Health Insurance on Safety Net Program Participation: Evidence from the ACA Medicaid Expansion

10.3386/w26504 ◽

2019 ◽

Author(s):

Lucie Schmidt ◽

Lara Shore-Sheppard ◽

Tara Watson

Keyword(s):

Public Health ◽

Health Insurance ◽

Safety Net ◽

Public Health Insurance ◽

Medicaid Expansion ◽

Program Participation ◽

The Impact

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The effects of public health insurance on health behaviors: Evidence from the fifth year of Medicaid expansion

Health Economics ◽

10.1002/hec.4155 ◽

2020 ◽

Vol 29 (12) ◽

pp. 1586-1605

Author(s):

Aparna Soni

Keyword(s):

Public Health ◽

Health Insurance ◽

Health Behaviors ◽

Public Health Insurance ◽

Medicaid Expansion

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COVID-19 will strain US health provision and budgets

Emerald Expert Briefings ◽

10.1108/oxan-db254280 ◽

2020 ◽

Keyword(s):

Public Health ◽

Health Insurance ◽

Affordable Care Act ◽

Low Income ◽

Healthcare Reform ◽

Public Health Insurance ◽

Medicaid Expansion ◽

Public And Private ◽

Content Type ◽

Low Income Families

Significance High and rising case numbers have strained public and private health systems. Medicaid, which caters to low-income families and will experience surging demand as job losses rise, is in particular distress, mainly because states co-fund and administer it. The strains are propelling healthcare reform as an electoral issue. Impacts Biden is unlikely to endorse ‘Medicare for all’ but will push his public health insurance option. The Republicans will struggle to elucidate a clear alternative to the Affordable Care Act before November. COVID-19 will fuel calls for Medicaid expansion, including in smaller conservative states.

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