MPT WWW
Selected research from leading health care experts whose findings have a direct bearing on public policies effecting medical progress. Research is chosen based on its quality and relevance by the Medical Progress Today editorial staff.

Selected Research

The Interaction of Public and Private Insurance: Medicaid and the Long Term Care Insurance Market
Jeffrey R. Brown, Amy Finkelstein, NBER Working Paper No. w10989, 12-1-04

As many researchers have long argued, these authors find that “the provision of even incomplete public insurance can substantially crowd out private insurance demand.” This means that, over time, private insurance providers will exit the long-term care market and leave government to (increasingly) foot the bill. This is because “Medicaid's large crowd out effect stems from the very large implicit tax (on the order of 60 to 75 percent for a median wealth individual) that Medicaid imposes on the benefits paid from private insurance policies.” Public policies designed to lure insurers back into this important sector will be ineffective “as long as Medicaid continues to impose this large implicit tax.”


Project FDA.
  
home   spotlight   commentary   research   events   news   about   contact   links   archives
Copyright Manhattan Institute for Policy Research
52 Vanderbilt Avenue
New York, NY 10017
(212) 599-7000
mpt@manhattan-institute.org