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Exploring the Effects of Medicaid During Childhood on the Economy and the Budget: Working Paper 2023-07

Author

Listed:
  • Elizabeth Ash
  • William Carrington
  • Rebecca Heller
  • Grace Hwang

Abstract

This paper examines the short- and long-term fiscal effects of Medicaid spending on children. In the short run, costs for Medicaid are paid upfront when the children (or their mothers) receive health care. In the long run, Medicaid enrollment during childhood has been shown to increase earnings in adulthood. Those higher earnings imply greater tax revenues and lower transfer payments by the federal government in the future. On a present-value basis, the Congressional Budget Office estimates that long-term fiscal effects of Medicaid spending on children could offset half or

Suggested Citation

  • Elizabeth Ash & William Carrington & Rebecca Heller & Grace Hwang, 2023. "Exploring the Effects of Medicaid During Childhood on the Economy and the Budget: Working Paper 2023-07," Working Papers 59231, Congressional Budget Office.
    • Handle: RePEc:cbo:wpaper:59231
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    File URL: https://www.cbo.gov/system/files/2023-10/59231-Medicaid.pdf
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • J3 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs

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