Does Medicare Benefit the Poor? New Answers to an Old Question
Previous research has found that Medicare benefits flow primarily to the most economically advantaged groups and that the financial returns to Medicare are consequently higher for the rich than for the poor. Taking a different approach, we find very different results. According to the Medicare Current Beneficiary Survey, the poorest groups receive the most benefits at any given age. In fact, the advantage of the poor in benefit receipt is so great that it easily overcomes their higher death rates. This leads to the result that the financial returns to Medicare are actually much higher for poorer groups in the population and that Medicare is a highly progressive public program. These new results appear to owe themselves to our measurement of socioeconomic status at the individual level, in contrast to the aggregated measures used by previous research.
|Date of creation:||Oct 2002|
|Date of revision:|
|Publication status:||published as Bhattacharya, Jay and Darius Lakdawalla. "Does Medicare Benefit The Poor?," Journal of Public Economics, 2006, v90(1-2,Jan), 277-292.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mark McClellan & Jonathan Skinner, 1997.
"The Incidence of Medicare,"
NBER Working Papers
6013, National Bureau of Economic Research, Inc.
- Julie Lee & Mark McClellan & Jonathan Skinner, 1999.
"The Distributional Effects of Medicare,"
in: Tax Policy and the Economy, Volume 13, pages 85-108
National Bureau of Economic Research, Inc.
- David Card, 1994.
"Earnings, Schooling, and Ability Revisited,"
710, Princeton University, Department of Economics, Industrial Relations Section..
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:9280. 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: ()
If references are entirely missing, you can add them using this form.