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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

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.

Suggested Citation

  • Ettner, Susan L, 1994. "The Effect of the Medicaid Home Care Benefit on Long-Term Care Choices of the Elderly," Economic Inquiry, Western Economic Association International, vol. 32(1), pages 103-127, January.
  • Handle: RePEc:oup:ecinqu:v:32:y:1994:i:1:p:103-27
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