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The Impact of State Children’s Health Insurance Program (SCHIP) Expansion on Health Insurance Coverage in Hawaii

Author

Listed:
  • Gerard Russo

    (Department of Economics, University of Hawaii at Manoa)

  • Jaclyn R.K. Lindo

    () (Department of Economics, University of Hawaii at Manoa)

  • Sang-Hyop Lee

    () (Department of Economics, University of Hawaii at Manoa)

  • Rui Wang
  • Thamana Lekprichakul
  • Abdul Jabbar

Abstract

This study investigates the impact of the State Children’s Health Insurance Program (SCHIP) expansion in Hawaii on health insurance coverage among low-income children ages 0 to 18 using the Current Population Survey. We employ a difference-in-differences approach by construction of a control group for which SCHIP eligibility remained constant, and a treatment group for which SCHIP eligibility changed over the observation period. We find that the initial SCHIP implementation of July 1, 2000 resulted in a 20 percent increase in SCHIP beneficiaries, with 87 percent of these children drawn from the ranks of the privately insured. The presence of substantial crowd-out is likely the result of important factors unique to Hawaii’s health insurance environment and implies that the cost to state and federal taxpayers per newly insured child is much higher than the usual per-capita expense. Subsequent expansions to higher federal poverty line that occurred since initial SCHIP implementation also likely generated substantial crowd-out.

Suggested Citation

  • Gerard Russo & Jaclyn R.K. Lindo & Sang-Hyop Lee & Rui Wang & Thamana Lekprichakul & Abdul Jabbar, 2012. "The Impact of State Children’s Health Insurance Program (SCHIP) Expansion on Health Insurance Coverage in Hawaii," Working Papers 201208, University of Hawaii at Manoa, Department of Economics.
  • Handle: RePEc:hai:wpaper:201208
    as

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    File URL: http://www.economics.hawaii.edu/research/workingpapers/WP_12-7.pdf
    File Function: First version, 2012
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    SCHIP; Medicaid; Crowd-out; Health Insurance;

    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I19 - Health, Education, and Welfare - - Health - - - Other

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