American Economic Journal:
Economic Policy
ISSN 1945-7731 (Print) | ISSN 1945-774X (Online)
The Impact of Provider Payments on Health Care Utilization of Low-Income Individuals: Evidence from Medicare and Medicaid
American Economic Journal: Economic Policy
vol. 17,
no. 1, February 2025
(pp. 106–43)
Abstract
Provider payments are the key determinant of insurance generosity within many health insurance programs covering low-income populations. This paper analyzes a large, federally mandated provider payment increase for primary care services provided to low-income elderly and disabled individuals. Using comprehensive administrative data, we leverage variation across beneficiaries and providers in the policy-induced payment increase in difference-in-differences and triple differences research designs. We find the payment increase led to a 6 percent increase in the targeted services for eligible beneficiaries, implying a payment elasticity of 1.2, and decreased the fraction of low-income beneficiaries with no primary care visit in a year by 9 percent.Citation
Cabral, Marika, Colleen Carey, and Sarah Miller. 2025. "The Impact of Provider Payments on Health Care Utilization of Low-Income Individuals: Evidence from Medicare and Medicaid." American Economic Journal: Economic Policy 17 (1): 106–43. DOI: 10.1257/pol.20220775Additional Materials
JEL Classification
- G22 Insurance; Insurance Companies; Actuarial Studies
- I11 Analysis of Health Care Markets
- I13 Health Insurance, Public and Private
- I18 Health: Government Policy; Regulation; Public Health
- I38 Welfare, Well-Being, and Poverty: Government Programs; Provision and Effects of Welfare Programs