Document Type
Article
Language
eng
Format of Original
13 p.
Publication Date
9-2016
Publisher
Elsevier
Source Publication
Journal of Health Economics
Source ISSN
1879-1646
Original Item ID
doi: 10.1016/j.jhealeco.2016.06.008
Abstract
Medicaid reimburses healthcare providers for services at a lower rate than any other type of insurance coverage. To account for the burden of treating Medicaid patients, providers claim that they must cost-shift by raising the rates of individuals covered by private insurance. Previous investigations of cost-shifting has produced mixed results. In this paper, I exploit a disabled Medicaid expansion where crowd-out was complete to investigate cost-shifting. I find that hospitals reduce the charge rates of the privately insured. Given that Medicaid is expanding in several states under the Affordable Care Act, these results may alleviate cost-shifting concerns of the reform.
Recommended Citation
Wagner, Kathryn L., "Shock, but no Shift: Hospitals' Responses to Changes in Patient Insurance Mix" (2016). Economics Faculty Research and Publications. 540.
https://epublications.marquette.edu/econ_fac/540
Comments
Accepted version. Journal of Health Economics, Vol. 49 (September 2016): 46-58. DOI. © 2016 Elsevier. Used with permission.