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On the value of Medicaid in providing access to long‐term care
Author(s) -
Fels Markus
Publication year - 2020
Publication title -
journal of public economic theory
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.809
H-Index - 32
eISSN - 1467-9779
pISSN - 1097-3923
DOI - 10.1111/jpet.12380
Subject(s) - medicaid , dilemma , crowding out , scope (computer science) , welfare , value (mathematics) , economics , term (time) , public economics , long term care insurance , long term care , private insurance , business , actuarial science , microeconomics , monetary economics , health care , market economy , economic growth , medicine , philosophy , physics , nursing , epistemology , quantum mechanics , machine learning , computer science , programming language
Abstract The crowding‐out by Medicaid has been identified as a possible reason for the low demand for private long‐term care (LTC) insurance in the USA. I extend the previous analysis to the case in which budget constraints inhibit access to care. This reduces the role of the implicit tax and fundamentally changes the nature, scope, and welfare implications of crowding‐out. It suggests a large value of Medicaid that a private insurance market is unable to offer due to a dilemma prevalent in—but not exclusive to—the market for LTC insurance: a dilemma between access and affordability.