Do the Poor Benefit from More Generous Medicaid Policies?

47 Pages Posted: 2 Jun 2014 Last revised: 6 Feb 2017

Alice Chen

University of Southern California - Schaeffer Center for Health Policy and Economics

Date Written: February 1, 2014

Abstract

This paper examines how changes in Medicaid physician payments affect provision of care to the poor. I find that when payments increase, Medicaid participation increases, but time spent treating the uninsured falls. I additionally show that payment increases result in greater Medicaid enrollment, possibly because physicians are more likely to encourage their uninsured patients to enroll in Medicaid. Finally, I demonstrate that when Medicaid eligibility is high, payment impacts on Medicaid supply are magnified, without an accompanying decrease in charity care. These results suggest that payment increases should be coupled with eligibility expansions in order to improve access to care, particularly among the uninsured who are ineligible for Medicaid.

Keywords: Medicaid payment, Medicaid eligibility, physician supply, charity care

JEL Classification: I1, I2, I3

Suggested Citation

Chen, Alice, Do the Poor Benefit from More Generous Medicaid Policies? (February 1, 2014). Available at SSRN: https://ssrn.com/abstract=2444286 or http://dx.doi.org/10.2139/ssrn.2444286

Alice Chen (Contact Author)

University of Southern California - Schaeffer Center for Health Policy and Economics ( email )

635 Downey Way
Los Angeles, CA 90089-3333
United States

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