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The Effects of Medicaid and Medicare Reforms on the Elderly’s Savings and Medical Expenditures

Author

Listed:
  • Mariacristina De Nardi

    (Federal Reserve Bank of Chicago and NBER)

  • Eric French

    (Federal Reserve Bank of Chicago)

  • John Bailey Jones

    (University at Albany, SUNY)

Abstract

We study a model in which retired single people optimally choose consumption, medical spending and saving while facing uncertainty about their health, lifespan and medical needs. This uncertainty is partially offset by insurance provided by the government and private institutions. We first show how well the model matches important features of the data and we analyze the degree of insurance provided by current programs. We then analyze the effects of some reforms, meant to capture changes in Medicaid and Medicare, on savings and medical expenditures.

Suggested Citation

  • Mariacristina De Nardi & Eric French & John Bailey Jones, 2010. "The Effects of Medicaid and Medicare Reforms on the Elderly’s Savings and Medical Expenditures," Working Papers wp236, University of Michigan, Michigan Retirement Research Center.
    • Handle: RePEc:mrr:papers:wp236
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    References listed on IDEAS

    as
    1. Susann Rohwedder & Steven J. Haider & Michael D. Hurd, 2006. "INCREASES IN WEALTH AMONG THE ELDERLY IN THE EARLY 1990s: HOW MUCH IS DUE TO SURVEY DESIGN?," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 52(4), pages 509-524, December.
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