Are coresidence and nursing homes substitutes? Evidence from Medicaid spend-down provisions.

Abstract:

:This paper measures the extent to which the price of nursing home care affects a potential substitute living arrangement: coresidence with adult children. Exploiting variation in state Medicaid income "spend-down" provisions over time, I find that living in a state with a spend-down provision decreases the prevalence of coresidence with adult children by 1-4 percentage points for single elderly individuals, with a corresponding increase in the use of nursing home care. These findings suggest that changes in Medicaid eligibility for long-term care benefits could have large impacts on living arrangements, care utilization patterns, and Medicaid expenditures.

journal_name

J Health Econ

authors

Mommaerts C

doi

10.1016/j.jhealeco.2018.04.003

subject

Has Abstract

pub_date

2018-05-01 00:00:00

pages

125-138

eissn

0167-6296

issn

1879-1646

pii

S0167-6296(17)30060-7

journal_volume

59

pub_type

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