What did Medicare do? The initial impact of Medicare on mortality and out of pocket medical spending

Finkelstein, Amy; McKnight, Robin

doi:10.1016/j.jpubeco.2007.10.005

Cited by 372 publications

(331 citation statements)

References 16 publications

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“…Mazumder and Miller (2016) examine the effects of Massachusetts health reform and document reductions in the amount of debt past due, the amount of debt in third-party collection, and the risk of bankruptcy, as well as improvements in credit scores. Similarly, Gross and Notowidigdo (2011) document substantial reductions in bankruptcy risk due to Medicaid expansions during the 1990s and early 2000s, and Finkelstein and McKnight (2008) demonstrate that the introduction of Medicare led to large reductions in exposure to high out-of-pocket medical costs among individuals over the age of 65.…”

Section: Greater Financial Securitymentioning

confidence: 96%

Red-State Medicaid Expansions — Achilles’ Heel of ACA Repeal?

Sommers¹,

Epstein²

2017

N Engl J Med

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Section: Greater Financial Securitymentioning

confidence: 96%

Red-State Medicaid Expansions — Achilles’ Heel of ACA Repeal?

Sommers¹,

Epstein²

2017

N Engl J Med

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“…Finkelstein (2007) and Finkelstein and McKnight (2008) estimate the impact of Medicare on insurance coverage, health care utilization, and spending. They find that the introduction of Medicare increased the share of elderly with insurance coverage by 75 percentage points and led to a significant reduction in the elderly's exposure to out-of-pocket medical expenditure risk.…”

Section: Relation To the Literaturementioning

confidence: 99%

Macroeconomic Effects of Medicare

Conesa¹,

Costa²,

Kamali³

et al. 2017

Preprint

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“…This is akin to assuming consumers are risk neutral, which is unappealing. Indeed, risk is a primary focus of a large number of economic studies on health insurance (Finkelstein and McKnight 2008, Abaluck and Gruber 2011, Engelhardt and Gruber 2011.…”

Section: Iia the Conventional Value Of Medical Technologymentioning

confidence: 99%

“…Likewise, economists measure the benefit of health insurance by valuing the reduction in financial risk associated with lower out-of-pocket spending for medical care (Finkelstein and McKnight 2008, Abaluck and Gruber 2011, Engelhardt and Gruber 2011. Studying innovation and insurance in isolation, however, overlooks fundamental connections between them.…”

Section: Introductionmentioning

confidence: 99%

The Insurance Value of Medical Innovation

Lakdawalla

Malani

Reif

2015

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Economists think of medical innovation as a valuable but risky good, producing health benefits but increasing financial risk. This perspective overlooks how innovation can lower physical risks borne by healthy patients facing the prospect of future disease. We present an alternative framework that accounts for all these aspects of value and links them to the value of health insurance. We show that any innovation worth buying reduces overall risk, thereby generating positive insurance value on its own. We conduct two empirical exercises to assess the significance of our insights. First, we calculate that conventional methods underestimate the value of historical health gains by 30-80%. Second, we examine a large set of medical technologies and calculate that insurance value on average adds 100% to the conventional valuation of those treatments. Moreover, we find that the physical risk-reduction value of these technologies is ten times greater than the financial risk they pose and the corresponding value of health insurance that insures this financial risk. Our analysis also suggests standard methods disproportionately undervalue treatments for the most severe illnesses, where physical risk to consumers is most costly.

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What did Medicare do? The initial impact of Medicare on mortality and out of pocket medical spending

Cited by 372 publications

References 16 publications

Red-State Medicaid Expansions — Achilles’ Heel of ACA Repeal?

Red-State Medicaid Expansions — Achilles’ Heel of ACA Repeal?

Macroeconomic Effects of Medicare

The Insurance Value of Medical Innovation

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