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The Effect of the Medicaid Home Care Benefit on Long-Term Care Choices of the Elderly

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  • Ettner, Susan L
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    Abstract

    This paper analyzes the impact of Medicaid home care benefits on the probability of nursing home entry and the use of formal and informal home care by disabled elderly remaining in the community. Using data from the National Long-Term Care Survey, the author finds evidence that Medicaid home care subsidies reduced the probability of nursing home entry among at-risk elderly using formal home care. Among noninstitutionalized persons, the subsidy increased the use of formal home care but led to substitution of informal with formal care for services that were nonmedical in nature. Copyright 1994 by Oxford University Press.

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    Bibliographic Info

    Article provided by Western Economic Association International in its journal Economic Inquiry.

    Volume (Year): 32 (1994)
    Issue (Month): 1 (January)
    Pages: 103-27

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    Handle: RePEc:oup:ecinqu:v:32:y:1994:i:1:p:103-27

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    Cited by:
    1. Darius Lakdawalla & Tomas Philipson, 1999. "Aging and the Growth of Long-Term Care," NBER Working Papers 6980, National Bureau of Economic Research, Inc.
    2. Peter C. Coyte & Mark Stabile, 2001. "Household Responses to Public Home Care Programs," NBER Working Papers 8523, National Bureau of Economic Research, Inc.
    3. Arntz, Melanie & Thomsen, Stephan L., 2008. "Reforming Home Care Provision in Germany: Evidence from a Social Experiment," ZEW Discussion Papers 08-114, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    4. Gopi Shah Goda & Ezra Golberstein & David C. Grabowski, 2010. "Income and the Utilization of Long-Term Care Services: Evidence from the Social Security Benefit Notch," NBER Working Papers 16076, National Bureau of Economic Research, Inc.
    5. Fontaine, Roméo, 2011. "The effect of public subsidies for formal care on the care provision for disabled elderly people in France," Economics Papers from University Paris Dauphine 123456789/9268, Paris Dauphine University.
    6. Darius N. Lakdawalla & Robert Schoeni, 2003. "Is nursing home demand affected by the decline in age difference between spouses?," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 8(10), pages 279-304, May.
    7. So-Yun Kim & Gong-Soog Hong & Catherine Montalto, 2012. "The Effect of Long-Term Care Insurance on Home Care Use Among the Disabled Elders," Journal of Family and Economic Issues, Springer, vol. 33(3), pages 353-362, September.
    8. Eric Bonsang, 2008. "Does Informal Care from Children to their Elderly Parents Substitute for Formal Care in Europe?," CREPP Working Papers 0801, Centre de Recherche en Economie Publique et de la Population (CREPP) (Research Center on Public and Population Economics) HEC-Management School, University of Liège.
    9. Charles, Kerwin Kofi & Sevak, Purvi, 2005. "Can family caregiving substitute for nursing home care?," Journal of Health Economics, Elsevier, vol. 24(6), pages 1174-1190, November.
    10. Agnès Gramain, 1997. "Décisions de recours au système de soins dans la prise en charge des personnes âgées dépen­ dantes : un modèle de choix discret dynamique," Économie et Prévision, Programme National Persée, vol. 129(3), pages 239-254.
    11. Arntz, Melanie & Thomsen, Stephan L., 2008. "Crowding out Informal Care? Evidence from a Social Experiment in Germany," ZEW Discussion Papers 08-113, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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