Document Type




Format of Original

14 p.

Publication Date




Source Publication

Journal of Health Economics

Source ISSN


Original Item ID

doi: 10.1016/j.jhealeco.2014.12.007; PubMed Central, PMCID: 25598083


Disabled individuals under 65 years old account for 15% of Medicaid recipients but half of all Medicaid spending. Despite their large cost, few studies have investigated the effects of Medicaid expansions for disabled individuals on insurance coverage and crowd-out of private insurance. Using an eligibility expansion that allowed states to provide Medicaid to disabled individuals with incomes less than 100% of the federal poverty level, I address these issues. Crowd-out estimates range from 49% using an ordinary least squares procedure to 100% using two-stage least-squares analysis. This potentially large degree of crowd-out could have fiscal implications for the Affordable Care Act which has greatly expanded Medicaid eligibility in 2014.


NOTICE: this is the author’s version of a work that was accepted for publication in Journal of Health Economics. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in Journal of Health Economics, Vol. 40 (March 2015): 69-82. DOI. © 2015 Elsevier. Used with permission.

Kathryn L. Wagner was affiliated with University of Notre Dame at the time of publication.

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