This paper examines the effect of government nursing home policies on institutionalization rates and support for the elderly in the community. We combine data from the National Long Term Care Survey with information on state policies to estimate these effects. We examine two state policies for nursing home care: the ability of some high income elderly to receive Medicaid support, and the price differential between Medicaid and the private market. Both policies strongly affect aggregate nursing home utilization. as well as the composition of nursing home residents. In states with more liberal Medicaid rules. the high income elderly are more likely to use a nursing home. while in states with larger underpayments. the poor suffer reduced access. The marginal source of community care for the institutionalized elderly appears to be support from children or other helpers, rather than living alone. Almost all of the elderly in nursing homes would have lived with children or others had they been in the community. In addition, as the ease of acquiring Medicaid increases or Medicaid payments become more generous, fewer elderly receive substantial day-to-day help from their children.
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Length: Date of creation: Mar 1993 Date of revision: Publication status: published relationship to a non-chapter. This should not happen. Please contact NBER. Handle: RePEc:nbr:nberwo:4302
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Chapter
David M. Cutler & Louise Sheiner, 1994.
"Policy Options for Long-Term Care,"
NBER Chapters,
in: Studies in the Economics of Aging, pages 395-442
National Bureau of Economic Research, Inc.
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Find related papers by JEL classification: I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
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Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1985.
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Bernheim, B Douglas & Shleifer, Andrei & Summers, Lawrence H, 1986.
"The Strategic Bequest Motive,"
Journal of Labor Economics,
University of Chicago Press, vol. 4(3), pages S151-82, July.
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Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
Jonathan Gruber, 2000.
"Medicaid,"
NBER Working Papers
7829, National Bureau of Economic Research, Inc.
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Jonathan Gruber, 2003.
"Medicaid,"
NBER Chapters,
in: Means-Tested Transfer Programs in the United States, pages 15-78
National Bureau of Economic Research, Inc.
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