47 Pages Posted: 2 Jun 2014 Last revised: 6 Feb 2017
Date Written: February 1, 2014
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: Suggested Citation