What did Medicare do? The initial impact of Medicare on mortality and out of pocket medical spending

• 成果类型: Article
• 署名作者: Finkelstein, Amy; McKnight, Robin
• 署名单位: Massachusetts Institute of Technology (MIT); National Bureau of Economic Research; University of Oregon
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2007.10.005
• 发表日期: 2008
• 页码: 1644-1668
• 关键词: Health insurance; medicare

摘要

We study the impact of the introduction of one of the major pillars of the social insurance system in the United States: the introduction of Medicare in 1965. Our results suggest that, in its first 10 years, the establishment of universal health insurance for the elderly had no discernible impact on elderly mortality. However, we find a substantial reduction in the elderly's exposure to out of pocket medical expenditure risk. Specifically, we estimate that the introduction of Medicare was associated with a 40% decline in out of pocket spending for the top quartile of the out of pocket spending distribution. A stylized expected utility framework suggests that the welfare gains from such reductions in risk exposure alone may be sufficient to cover almost two-fifths of the costs of Medicare. These findings underscore the importance of considering the direct insurance benefits from public health insurance programs, in addition to any indirect benefits from an effect on health. (c) 2007 Elsevier B.V. All rights reserved.