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The Effect Of Parental Medicaid Expansions On Children'S Health Insurance Coverage

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  • Sarah Hamersma
  • Matthew Kim
  • Brenden Timpe

Abstract

Research on public health insurance expansions has typically focused on those targeted by the expansions; we estimate the spillover effects of parental Medicaid expansions on the insurance coverage of their children. Expanding parental Medicaid eligibility may increase participation by already‐eligible, uninsured children by increasing the value of Medicaid enrollment for the entire family. However, parental expansions may also generate crowd out from private coverage. Using the Survey of Income and Program Participation during a period of major parental Medicaid expansions, we find substantial effects of the expansions on the Medicaid participation of children, with evidence of crowd out among some subsamples. (JEL H51, I13, I38)

Suggested Citation

  • Sarah Hamersma & Matthew Kim & Brenden Timpe, 2019. "The Effect Of Parental Medicaid Expansions On Children'S Health Insurance Coverage," Contemporary Economic Policy, Western Economic Association International, vol. 37(2), pages 297-311, April.
    • Handle: RePEc:bla:coecpo:v:37:y:2019:i:2:p:297-311
    DOI: 10.1111/coep.12392
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    References listed on IDEAS

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    1. Shore-Sheppard Lara D., 2008. "Stemming the Tide? The Effect of Expanding Medicaid Eligibility On Health Insurance Coverage," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 8(2), pages 1-35, July.
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    3. David Card & Lara D. Shore-Sheppard, 2004. "Using Discontinuous Eligibility Rules to Identify the Effects of the Federal Medicaid Expansions on Low-Income Children," The Review of Economics and Statistics, MIT Press, vol. 86(3), pages 752-766, August.
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    5. Lo Sasso, Anthony T. & Buchmueller, Thomas C., 2004. "The effect of the state children's health insurance program on health insurance coverage," Journal of Health Economics, Elsevier, vol. 23(5), pages 1059-1082, September.
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    7. Gruber, Jonathan & Simon, Kosali, 2008. "Crowd-out 10 years later: Have recent public insurance expansions crowded out private health insurance?," Journal of Health Economics, Elsevier, vol. 27(2), pages 201-217, March.
    8. Nada Eissa & Jeffrey B. Liebman, 1996. "Labor Supply Response to the Earned Income Tax Credit," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(2), pages 605-637.
    9. John C. Ham & Serkan Ozbeklik & Lara D. Shore-Sheppard, 2014. "Estimating Heterogeneous Takeup and Crowd-Out Responses to Existing Medicaid Income Limits and their Nonmarginal Expansions," Journal of Human Resources, University of Wisconsin Press, vol. 49(4), pages 872-905.
    10. Blumberg, Linda J. & Dubay, Lisa & Norton, Stephen A., 2000. "Did the Medicaid expansions for children displace private insurance? An analysis using the SIPP," Journal of Health Economics, Elsevier, vol. 19(1), pages 33-60, January.
    11. Hamersma, Sarah & Kim, Matthew, 2013. "Participation and crowd out: Assessing the effects of parental Medicaid expansions," Journal of Health Economics, Elsevier, vol. 32(1), pages 160-171.
    12. Ham, John C. & Shore-Sheppard, Lara, 2005. "The effect of Medicaid expansions for low-income children on Medicaid participation and private insurance coverage: evidence from the SIPP," Journal of Public Economics, Elsevier, vol. 89(1), pages 57-83, January.
    13. Hamersma Sarah, 2013. "The Effects of Medicaid Earnings Limits on Earnings Growth among Poor Workers," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 13(2), pages 887-919, August.
    14. Sommers, Benjamin D., 2006. "Insuring children or insuring families: Do parental and sibling coverage lead to improved retention of children in Medicaid and CHIP?," Journal of Health Economics, Elsevier, vol. 25(6), pages 1154-1169, November.
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    Citations

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    Cited by:

    1. Lindsey Rose Bullinger & Maithreyi Gopalan & Caitlin McPherran Lombardi, 2023. "Impacts of publicly funded health insurance for adults on children's academic achievement," Southern Economic Journal, John Wiley & Sons, vol. 89(3), pages 860-884, January.
    2. Jonathan Gruber & Benjamin D. Sommers, 2019. "The Affordable Care Act’s Effects on Patients, Providers and the Economy: What We’ve Learned So Far," NBER Working Papers 25932, National Bureau of Economic Research, Inc.
    3. Aouad, Marion, 2021. "An Examination of the Intracorrelation of Family Health Insurance," IZA Discussion Papers 14541, Institute of Labor Economics (IZA).
    4. Hamersma, Sarah & Maclean, Johanna Catherine, 2021. "Do expansions in adolescent access to public insurance affect the decisions of substance use disorder treatment providers?," Journal of Health Economics, Elsevier, vol. 76(C).
    5. Hamersma, Sarah & Ye, Jinqi, 2021. "The effect of public health insurance expansions on the mental and behavioral health of girls and boys," Social Science & Medicine, Elsevier, vol. 280(C).
    6. Lombardi, Caitlin & Bullinger, Lindsey Rose & Gopalan, Maithreyi, 2022. "Better Late than Never: Effects of Late ACA Medicaid Expansions for Parents on Family Health-Related Financial Well-being," SocArXiv q7csj, Center for Open Science.
    7. Shooshan Danagoulian & Daniel Grossman & David Slusky, 2022. "Health Care Following Environmental Disasters: Evidence from Flint," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 41(4), pages 1060-1089, September.
    8. Melissa McInerney & Jennifer M. Mellor & Lindsay M. Sabik, 2021. "Welcome Mats and On‐Ramps for Older Adults: The Impact of the Affordable Care Act's Medicaid Expansions on Dual Enrollment in Medicare and Medicaid," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 40(1), pages 12-41, January.
    9. Gopalan, Maithreyi & Lombardi, Caitlin McPherran & Bullinger, Lindsey Rose, 2022. "Effects of parental public health insurance eligibility on parent and child health outcomes," Economics & Human Biology, Elsevier, vol. 44(C).
    10. Ye, Wei & Rodriguez, Javier M., 2021. "Highly vulnerable communities and the Affordable Care Act: Health insurance coverage effects, 2010–2018," Social Science & Medicine, Elsevier, vol. 270(C).

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    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs

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