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The Effect of the State Children's Health Insurance Program on Health Insurance Coverage

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  • Anthony T. LoSasso
  • Thomas C. Buchmueller

Abstract

This paper presents the first national estimates of the effects of the SCHIP expansions on insurance coverage. Using CPS data on insurance coverage during the years 1996 through 2000, we estimate two-stage least squares regressions of insurance coverage. We find that SCHIP had a small, but statistically significant positive effect on insurance coverage. Our regression results imply that between 4% and 10% of children meeting income eligibility standards for the new program gained public insurance. While low, these estimates indicate that states were more successful in enrolling children in SCHIP than they were with prior Medicaid expansions focused on children just above the poverty line. Crowd-out of private health insurance was estimated to be in line with estimates for the Medicaid expansions of the early 1990s, between 18% and 50%.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9405.

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Date of creation: Dec 2002
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Publication status: published as 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.
Handle: RePEc:nbr:nberwo:9405

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  1. Kaestner, Robert & Kaushal, Neeraj, 2003. "Welfare reform and health insurance coverage of low-income families," Journal of Health Economics, Elsevier, Elsevier, vol. 22(6), pages 959-981, November.
  2. Mark C. Berger & Dan A. Black & Frank A. Scott, 1998. "How Well Do We Measure Employer-Provided Health Insurance Coverage?," Contemporary Economic Policy, Western Economic Association International, Western Economic Association International, vol. 16(3), pages 356-367, 07.
  3. John Ham & Lara Dawn Shore-Sheppard, 2000. "The Effect of Medicaid Expansions for Low-Income Children on Medicaid Participation and Insurance Coverage: Evidence from the SIPP," JCPR Working Papers, Northwestern University/University of Chicago Joint Center for Poverty Research 164, Northwestern University/University of Chicago Joint Center for Poverty Research.
  4. David Card & Lara Dawn Shore-Sheppard, 2001. "Using Discontinuous Eligibility Rules to Identify the Effects of the Federal Medicaid Expansions," JCPR Working Papers, Northwestern University/University of Chicago Joint Center for Poverty Research 248, Northwestern University/University of Chicago Joint Center for Poverty Research.
  5. Lara D. Shore-Sheppard, 2005. "Stemming the Tide? The Effect of Expanding Medicaid Eligibility on Health Insurance," NBER Working Papers 11091, National Bureau of Economic Research, Inc.
  6. Anna Aizer & Jeffrey Grogger, 2003. "Parental Medicaid Expansions and Health Insurance Coverage," NBER Working Papers 9907, National Bureau of Economic Research, Inc.
  7. John Cawley & Kosali I. Simon, 2003. "The Impact of Macroeconomic Conditions on the Health Insurance Coverage of Americans," NBER Chapters, in: Frontiers in Health Policy Research, Volume 6, pages 87-114 National Bureau of Economic Research, Inc.
  8. Cutler, David M & Gruber, Jonathan, 1996. "Does Public Insurance Crowd Out Private Insurance?," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 111(2), pages 391-430, May.
  9. Esel Y. Yazici & Robert Kaestner, 1998. "Medicaid Expansions and The Crowding Out of Private Health Insurance," NBER Working Papers 6527, National Bureau of Economic Research, Inc.
  10. David Card & Lara D. Shore-Sheppard, 2002. "Using Discontinuous Eligibility Rules to Identify the Effects of the Federal Medicaid Expansions on Low Income Children," NBER Working Papers 9058, National Bureau of Economic Research, Inc.
  11. Currie, Janet & Grogger, Jeffrey, 2002. "Medicaid expansions and welfare contractions: offsetting effects on prenatal care and infant health?," Journal of Health Economics, Elsevier, Elsevier, vol. 21(2), pages 313-335, March.
  12. Janet Currie & Jonathan Gruber, 1995. "Health Insurance Eligibility, Utilization of Medical care, and Child Health," NBER Working Papers 5052, National Bureau of Economic Research, Inc.
  13. Dahlia K. Remler & Jason E. Rachlin & Sherry A. Glied, 2001. "What can the take-up of other programs teach us about how to improve take-up of health insurance programs?," NBER Working Papers 8185, National Bureau of Economic Research, Inc.
  14. Kimball Lewis & Marilyn Ellwood & John L. Czajka, 1998. "Counting the Uninsured: A Review of the Literature," Mathematica Policy Research Reports, Mathematica Policy Research 2479, Mathematica Policy Research.
  15. Glied, Sherry & Stabile, Mark, 2001. "Avoiding health insurance crowd-out: evidence from the medicare as secondary payer legislation," Journal of Health Economics, Elsevier, Elsevier, vol. 20(2), pages 239-260, March.
  16. 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, Elsevier, vol. 19(1), pages 33-60, January.
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