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.

The Review of Economics and Statistics
|May 7, 2019
PubMed

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.

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