What did medicare do (and was it worth it)?
By: Amy Finkelstein, Robin McKnight.
Contributors: McKnight, Robin.; National Bureau of Economic Research.
Series: NBER working paper series ;; working paper 11609; Working paper series (National Bureau of Economic Research : Online) ;; working paper no. 11609.
Publisher: National Bureau of Economic Research
Published: 2005
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Subjects: Medicare -- Cost effectiveness.
Description: "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 their mortality.  However, we find that the introduction of Medicare was associated with a substantial reduction in the elderly's exposure to out of pocket medical expenditure risk.  Specifically, we estimate that Medicare's introduction is associated with a forty percent 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 between half and three-quarters of the costs of the Medicare program.  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"--National Bureau of Economic Research web site.
Notes: Includes bibliographical references.
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Mode of access: World Wide Web.