Parental Medicaid Expansions and Health Insurance Coverage

32 Pages Posted: 19 Aug 2003 Last revised: 4 Nov 2010

See all articles by Anna Aizer

Anna Aizer

Brown University - Department of Economics; National Bureau of Economic Research (NBER)

Jeffrey Grogger

University of Chicago - Harris School of Public Policy; National Bureau of Economic Research (NBER)

Date Written: August 2003

Abstract

During the 1990s many states extended Medicaid eligibility to low-income parents who were not receiving welfare. We evaluate the effects of those expansions on health insurance coverage. To account for unobservable differences between expansion states and non-expansion states that may be correlated with both policy decisions and insurance coverage, we employ a within-state difference-in-difference technique that makes use of data only from expansion states. We find that the parental eligibility expansions increased Medicaid coverage of mothers with only small effects on private coverage. The expansions also increased the coverage of children, presumably by raising the benefit to the family of applying for coverage. We find substantial racial and ethnic differences in the effects of the expansions. As a result, the expansions help reduce racial and ethnic gaps in insurance coverage, particularly for adults.

Suggested Citation

Aizer, Anna and Grogger, Jeffrey T., Parental Medicaid Expansions and Health Insurance Coverage (August 2003). NBER Working Paper No. w9907, Available at SSRN: https://ssrn.com/abstract=435481

Anna Aizer

Brown University - Department of Economics ( email )

64 Waterman Street
Providence, RI 02912
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National Bureau of Economic Research (NBER)

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Jeffrey T. Grogger (Contact Author)

University of Chicago - Harris School of Public Policy ( email )

1155 East 60th Street
Chicago, IL 60637
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

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