Old, Sick, Alone, and Poor: A Welfare Analysis of Old-Age Social Insurance Programs

Braun, R. Anton; Kopecky, Karen A.; Koreshkova, Tatyana

doi:10.2139/ssrn.2359201

Cited by 25 publications

(23 citation statements)

References 41 publications

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“…Kopecky and Koreshkova (2014) find that old-age medical expenses and the coverage of these expenses provided by Medicaid have large effects on aggregate capital accumulation. Braun, Kopecky, and Koreshkova (2015) use a model with medical expense risk to assess the incentive and welfare effects of Social Security and means-tested social insurance programs like Medicaid. They too find that Medicaid provides the elderly with valuable insurance.…”

Section: Literature Reviewmentioning

confidence: 99%

Medicaid Insurance in Old Age

Nardi

French

Jones

2016

American Economic Review

130

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Many elderly households benefit from Medicaid, a means-tested, public health insurance program. Despite the increasing importance of Medicaid in the presence of an aging population and rising medical costs, very little is known about how Medicaid payments are distributed among the elderly and how the elderly value these payments. Which elderly households receive Medicaid transfers? How redistributive are these transfers and the taxes needed to finance them? What is the insurance value of these transfers? Is Medicaid of about the right size? How much would people lose if it were cut? These are important questions to answer before reforming the programs currently in place. In this paper we seek to fill this gap.We focus on single retirees, who comprise about 50 percent of people aged 70 or older and 70 percent of households aged 70 or older. We document new facts on Medicaid recipiency in the Assets and Health Dynamics Among the Oldest Old (AHEAD) data and show that, while the recipiency rate in the bottom income quintile is around 70 percent throughout retirement, the recipiency rate of higher-income

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Section: Literature Reviewmentioning

confidence: 99%

Medicaid Insurance in Old Age

Nardi

French

Jones

2016

American Economic Review

130

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“…http://data.worldbank.org/indicator/SH.XPD.TOTL.ZS Component, private sector establishment data to compute this probability, p E (n). 4 The average probability that a rm oers insurance is 62%. The table also reports the administrative cost of providing health insurance.…”

Section: Us Health Insurance Factsmentioning

confidence: 99%

Employment-based health insurance and misallocation: Implications for the macroeconomy

Chivers

Feng

Villamil

2017

Review of Economic Dynamics

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Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. Abstract Most working-age Americans obtain health insurance through the workplace. U.S. law requires employers to use a common price, but the value of insurance varies with idiosyncratic health risk. Hence, linking employment and health insurance creates a wedge between the marginal cost and benet of insurance. We study the impact of this wedge on occupational choice and welfare in a general equilibrium model. Agents face idiosyncratic health expenditure shocks, have heterogeneous managerial and worker productivity, and choose whether to be workers or entrepreneurs. First, we consider a private insurance indemnity policy that removes the link between employment and health insurance, so only ability matters for occupational choice. By construction, this is the most ecient policy. We nd a welfare gain of 2.28% from decoupling health insurance and employment. Second, we tighten the link by increasing employment-based health insurance from the current level of 62% to 100%, and nd a welfare loss of -0.61%. JEL Classication: E23, I10, O40.

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“…Our model does not differentiate between males and females and thus requires a lower fertility rate to achieve a stable population. 6 To eliminate small oscillations in annual births, we fix the number of births in our benchmark projection at 328,600 from the year 2138 onward. With this assumption, the population and its age structure stabilize in the year 2246. likely, but simply to illustrate how rapidly the fertility rate would have to rise to prevent Japan from becoming a substantially older society than it is now and from remaining quite old well into the next century.…”

Section: Demographic Data and Projections For Japanmentioning

confidence: 99%

The Implications of a Graying Japan for Government Policy

Braun

Joines

2014

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Abstract: Japan is in the midst of a demographic transition that is both rapid and large by international standards. As recently as 1990, Japan had the youngest population among the Group of 6 large, developed countries. However, the combined effects of aging of the baby boomer generation and low fertility rates have produced very rapid aging. Japan now finds itself with the oldest population among the Group of 6, and its population will continue to age at a rapid pace in future years. Aging is already placing a burden on government finances, and Japan's ability to confront the negative fiscal implications of future aging is constrained by its very high debt-to-GDP ratio. We find that Japan faces a severe fiscal crisis if remedial action is not undertaken soon, and we analyze alternative strategies for correcting Japan's fiscal imbalances. Terms of use: Documents inJEL classification: E62, H51, H55, H63

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Old, Sick, Alone, and Poor: A Welfare Analysis of Old-Age Social Insurance Programs

Cited by 25 publications

References 41 publications

Medicaid Insurance in Old Age

Medicaid Insurance in Old Age

Employment-based health insurance and misallocation: Implications for the macroeconomy

The Implications of a Graying Japan for Government Policy

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