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.

Comments

Accepted version. Journal of Health Economics, Vol. 49 (September 2016): 46-58. DOI. © 2016 Elsevier. Used with permission.

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