The responsiveness of medicaid spending to the federal subsidy M. Kate Bundorf and Daniel P. Kessler
By: Bundorf, M. Kate
.
Contributor(s): Kessler, Daniel Philip.
Material type: 
ArticleSubject(s): SEGUROS DE SALUD | ASISTENCIA SANITARIA | SEGURO DE DESEMPLEO | GASTOS SANITARIOS | CALCULO ECONOMICO | ESTADOS UNIDOS
In:
National Tax Journal v. 75, n. 4, december 2022, p. 661-680Summary: Although economic theory suggests that the federal government can influence spending by states through subsidies to programs that states operate, no recent work has quantified the magnitude of this effect for Medicaid, the largest program of this type in the United States. We find that Medicaid spending per enrollee responds to the magnitude of the federal subsidy. The Affordable Care Act (ACA) and its subsequent interpretation by the Supreme Court gave states the option to expand eligibility for their Medicaid programs in exchange for increases in the generosity of the federal subsidy for the population made eligible by the expansion. States that exercised this option increased Medicaid spending per enrollee on enrollees who were eligible even before the ACA by approximately 15 percent. Depending on the specification, this translates into an elasticity of Medicaid spending per enrollee with respect to the after-subsidy price of Medicaid to a state of −0.494 to −0.579.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 233/2022/4-1 (Browse shelf) | Available | OP 233/2022/4-1 |
Browsing IEF Shelves Close shelf browser
| No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | No cover image available | ||
| OP. 233/2022/3-2 Lists | OP. 233/2022/3-3 The impact of financial transaction taxes on stock markets | OP 233/2022/4 National Tax Journal | OP 233/2022/4-1 The responsiveness of medicaid spending to the federal subsidy | OP 233/2022/4-2 The Revenue Productivity of India’s Subnational VAT | OP 233/2022/4-3 Real-time forecasts of State and Local Government budgets with an application to the COVID-19 pandemic | OP 233/2023/1 National Tax Journal |
Although economic theory suggests that the federal government can influence spending by states through subsidies to programs that states operate, no recent work has quantified the magnitude of this effect for Medicaid, the largest program of this type in the United States. We find that Medicaid spending per enrollee responds to the magnitude of the federal subsidy. The Affordable Care Act (ACA) and its subsequent interpretation by the Supreme Court gave states the option to expand eligibility for their Medicaid programs in exchange for increases in the generosity of the federal subsidy for the population made eligible by the expansion. States that exercised this option increased Medicaid spending per enrollee on enrollees who were eligible even before the ACA by approximately 15 percent. Depending on the specification, this translates into an elasticity of Medicaid spending per enrollee with respect to the after-subsidy price of Medicaid to a state of −0.494 to −0.579.
Click on an image to view it in the image viewer
There are no comments for this item.