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The Impact of Medicaid Expansion on Household Consumption

Author

Listed:
  • Helen Levy

    (University of Michigan)

  • Thomas Buchmueller

    (Ross School of Business, University of Michigan)

  • Sayeh Nikpay

    (Vanderbilt University Medical Center)

Abstract

We use data from the Consumer Expenditure Survey for 2010 through 2016 to compare trends in insurance coverage and consumption for household that did and did not expand eligibility for Medicaid under the Affordable Care Act in 2014. Consistent with earlier studies, we find significant increases in Medicaid coverage in expansion relative to non-expansion states, and we find small but significant reductions in quarterly health spending of about $60, or just less than one-quarter of the baseline value. We find no significant change in non-health consumption as a result of Medicaid expansion.

Suggested Citation

  • Helen Levy & Thomas Buchmueller & Sayeh Nikpay, 2019. "The Impact of Medicaid Expansion on Household Consumption," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 45(1), pages 34-57, January.
  • Handle: RePEc:pal:easeco:v:45:y:2019:i:1:d:10.1057_s41302-018-0124-7
    DOI: 10.1057/s41302-018-0124-7
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    References listed on IDEAS

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    Cited by:

    1. David J. G. Slusky & Donna K. Ginther, 2021. "Did Medicaid expansion reduce medical divorce?," Review of Economics of the Household, Springer, vol. 19(4), pages 1139-1174, December.
    2. Panchalingam, Thadchaigeni, 2020. "Effects of Public Health Insurance Expansions on Consumption Expenditures of Targeted Households," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304513, Agricultural and Applied Economics Association.
    3. David Slusky & Donna Ginther, 2017. "Did Medicaid Expansion Reduce Medical Divorce?," NBER Working Papers 23139, National Bureau of Economic Research, Inc.
    4. Lipton, Brandy, 2019. "Adult Medicaid Benefit Generosity and Receipt of Recommended Health Services among Low-Income Children: The Spillover Effects of Medicaid Adult Dental Coverage Expansions," MPRA Paper 93248, University Library of Munich, Germany.
    5. Lipton, Brandy J., 2021. "Adult Medicaid benefit generosity and receipt of recommended health services among low-income children: The spillover effects of Medicaid adult dental coverage expansions," Journal of Health Economics, Elsevier, vol. 75(C).

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    More about this item

    Keywords

    Medicaid; Health reform; Consumption; Health spending;
    All these keywords.

    JEL classification:

    • I38 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Government Programs; Provision and Effects of Welfare Programs
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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