IDEAS home Printed from
   My bibliography  Save this article

Are the Elderly Responsive in Their Savings Behavior to Changes in Asset Limits for Medicaid?


  • Nadia Greenhalgh-Stanley

    () (Department of Economics, Kent State University, Kent, OH, USA)


In light of recent policy discussions aimed at reforming Medicaid, it is important to understand how the elderly respond to changes in the incentives of Medicaid. This article estimates the effect of a decrease in the implicit tax of holding assets brought about by the Medicare Catastrophic Coverage Act of 1988. Using the Health and Retirement Study (HRS), I find that a $1 increase in state asset protections increased median total wealth holdings by $0.20, financial wealth by $0.04, and home equity by $0.27. As expected, larger responses are found for residents of states with income limits in place prior to the law change and for states that chose the highest level of protected resource amounts.

Suggested Citation

  • Nadia Greenhalgh-Stanley, 2015. "Are the Elderly Responsive in Their Savings Behavior to Changes in Asset Limits for Medicaid?," Public Finance Review, , vol. 43(3), pages 324-346, May.
  • Handle: RePEc:sae:pubfin:v:43:y:2015:i:3:p:324-346

    Download full text from publisher

    File URL:
    Download Restriction: no


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:pubfin:v:43:y:2015:i:3:p:324-346. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (SAGE Publications). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.