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Medicaid, welfare dependency, and work: is there a causal link?
Health Care Financing Review
|March 4, 1994
Summary
Medicaid encourages welfare use among single mothers, while private health insurance promotes employment. Comprehensive, accessible private insurance could significantly boost work incentives more than Medicaid boosts welfare reliance.
Area of Science:
- Health economics
- Social policy
- Labor economics
Background:
- Medicaid influences welfare participation decisions for single mothers.
- Private health insurance availability impacts women's employment and welfare decisions.
Purpose of the Study:
- To analyze the differential effects of Medicaid and private health insurance on welfare participation and employment among women.
- To compare the potential impact of enhanced private insurance on work incentives versus Medicaid's effect on welfare reliance.
Main Methods:
- The study examines the "pull" of Medicaid on welfare recipients.
- It analyzes the influence of private health insurance availability on women's work decisions and welfare participation.
Main Results:
- Medicaid increases the likelihood of single mothers applying for and remaining on welfare for health coverage.
- Private health insurance availability positively influences women's decisions to work and negatively affects welfare participation.
Conclusions:
- Medicaid acts as a significant "pull" factor for welfare participation.
- Accessible and comprehensive private health insurance has a greater potential to promote employment than Medicaid has to promote welfare use.
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