Journal
AMERICAN ECONOMIC REVIEW
Volume 111, Issue 8, Pages 2550-2593Publisher
AMER ECONOMIC ASSOC
DOI: 10.1257/aer.20171671
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Funding
- Robert Wood Johnson Health Policy Scholars program
- National Institutes of Health [R01 HD069609, R01 AG040213]
- National Science Foundation [SES 1157698, 1623684]
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Childhood Medicaid eligibility has long-term effects on adult health and economic outcomes, with early eligibility leading to reduced mortality and disability rates, increased employment, and other positive impacts.
This paper estimates the long-run effects of childhood Medicaid eligibility on adult health and economic outcomes using the program's original introduction (1966-1970) and its mandated coverage of welfare recipients. The design compares cohorts born in different years relative to Medicaid implementation, in states with different preexisting welfare-based eligibility. Early childhood Medicaid eligibility reduces mortality and disability, increases employment, and reduces receipt of disability transfer programs up to 50 years later. Medicaid has saved the government more than its original cost and saved more than 10 million quality adjusted life years.
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