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Published on: July 27, 2018
Childhood Medicaid Coverage and Later-Life Health Care Utilization
Laura R Wherry1, Sarah Miller2, Robert Kaestner3
1David Geffen School of Medicine, University of California, Los Angeles.
Insights
More years of childhood Medicaid eligibility are linked to fewer adult hospitalizations, particularly for Black individuals. This suggests long-term health benefits and potential cost savings from expanded coverage.
Area of Science:
- Health Economics
- Public Health Policy
- Longitudinal Health Outcomes
Background:
- Childhood Medicaid eligibility is determined by date of birth, creating a natural experiment.
- Understanding the long-term impacts of early healthcare access is crucial for public health policy.
Purpose of the Study:
- To examine the association between years of childhood Medicaid eligibility and subsequent adult healthcare utilization.
- To investigate potential racial disparities in the long-term effects of childhood Medicaid.
Main Methods:
- Utilized a discontinuity in Medicaid eligibility based on date of birth to establish causal inference.
- Analyzed hospitalization and emergency department visit data in adulthood.
Main Results:
- Increased years of childhood Medicaid eligibility correlated with reduced adult hospitalizations.
- Black individuals experienced a significant decrease in hospitalizations (7-15%) and a suggestive decrease in emergency department visits (2-5%), with no similar effect observed for non-Black individuals.
- These effects were more pronounced for chronic illness-related utilization and in low-income areas.
Conclusions:
- Extended childhood Medicaid eligibility offers long-term health benefits, including reduced adult hospitalizations, especially for Black populations.
- The findings suggest that expanded Medicaid coverage for children could lead to significant healthcare cost offsets in the long run.
Abstract:
Exploiting a discontinuity in childhood Medicaid eligibility based on date of birth, we find that more years of childhood eligibility are associated with fewer hospitalizations in adulthood. For blacks, we find a 7-15% decrease in hospitalizations and a suggestive 2-5% decrease in emergency department visits, but no similar effect for non-blacks. The effects are pronounced for utilization related to chronic illnesses and for patients living in low-income zip codes. Calculations suggest that lower rates of hospitalizations during one year in adulthood for blacks offset between 2 and 4 percent of the initial costs of expanding Medicaid for all children.
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