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Medicaid and the Elderly

Author

Listed:
  • Mariacristina De Nardi
  • Eric French
  • John Bailey Jones
  • Angshuman Gooptu

Abstract

We describe the Medicaid eligibility rules for the elderly. Medicaid is administered jointly by the Federal and state governments, and each state has significant flexibility on the details of the implementation. We document the features common to all states, but we also highlight the most salient state-level differences. There are two main pathways to Medicaid eligibility for people over age 65: either having low assets and income, or being impoverished due to large medical expenses. The first group of recipients (the categorically needy) mostly includes life-long poor individuals, while the second group (the medically needy) includes people who might have earned substantial amounts of money during their lifetime but have become impoverished by large medical expenses. The categorically needy program thus only affects the savings decision of people who have been poor throughout most of their lives. In contrast, the medically needy program provides some insurance even to people who have higher income and assets. Thus, this second pathway is to some extent going to affect the savings of the relatively higher income and assets people.

Suggested Citation

  • Mariacristina De Nardi & Eric French & John Bailey Jones & Angshuman Gooptu, 2011. "Medicaid and the Elderly," NBER Working Papers 17689, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:17689
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    Cited by:

    1. Mariacristina De Nardi & Eric French & John Bailey Jones, 2016. "Medicaid Insurance in Old Age," American Economic Review, American Economic Association, vol. 106(11), pages 3480-3520, November.
    2. repec:eee:hapoch:v1_237 is not listed on IDEAS
    3. repec:eee:hapoch:v1_457 is not listed on IDEAS
    4. Wagner, Kathryn L., 2016. "Shock, but no shift: Hospitals' responses to changes in patient insurance mix," Journal of Health Economics, Elsevier, vol. 49(C), pages 46-58.
    5. Fang, H., 2016. "Insurance Markets for the Elderly," Handbook of the Economics of Population Aging, Elsevier.

    More about this item

    JEL classification:

    • H1 - Public Economics - - Structure and Scope of Government
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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