The Value of Medicaid: Interpreting Results from the Oregon Health Insurance Experiment

S-Tier
Journal: Journal of Political Economy
Year: 2019
Volume: 127
Issue: 6
Pages: 2836 - 2874

Authors (3)

Amy Finkelstein (not in RePEc) Nathaniel Hendren (not in RePEc) Erzo F. P. Luttmer (Dartmouth College)

Score contribution per author:

2.681 = (α=2.01 / 3 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We develop frameworks for welfare analysis of Medicaid and apply them to the Oregon Health Insurance Experiment. Across different approaches, we estimate low-income uninsured adults’ willingness to pay for Medicaid between $0.5 and $1.2 per dollar of the resource cost of providing Medicaid; estimates of the expected transfer Medicaid provides to recipients are relatively stable across approaches, but estimates of its additional value from risk protection are more variable. We also estimate that the resource cost of providing Medicaid to an additional recipient is only 40 percent of Medicaid’s total cost; 60 percent of Medicaid spending is a transfer to providers of uncompensated care for the low-income uninsured.

Technical Details

RePEc Handle
repec:ucp:jpolec:doi:10.1086/702238
Journal Field
General
Author Count
3
Added to Database
2026-01-25