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Area Poverty Effects on Local Health Care Costs: An Analysis of Mississippi

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  • Brandon Roberts

Abstract

This article examines the relationship of area medical costs and poverty in Mississippi. Using a fixed‐effects model and Medicare expenditures, the results indicate that an addition of one percentage point in area poverty increases expected per enrollee expenditures by 0.90%. These figures imply that successful poverty amelioration efforts could yield substantial reductions in medical costs over time. The estimates suggest that a one‐percentage‐point reduction in poverty could accrue to a statewide savings of $510 million in medical costs over a 5‐year time period.

Suggested Citation

  • Brandon Roberts, 2006. "Area Poverty Effects on Local Health Care Costs: An Analysis of Mississippi," Review of Policy Research, Policy Studies Organization, vol. 23(1), pages 223-233, January.
    • Handle: RePEc:bla:revpol:v:23:y:2006:i:1:p:223-233
    DOI: 10.1111/j.1541-1338.2006.00194.x
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    File URL: https://doi.org/10.1111/j.1541-1338.2006.00194.x
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    Cited by:

    1. Brandon Roberts & Irving Hoch, 2009. "Malpractice litigation and medical costs in the United States," Health Economics, John Wiley & Sons, Ltd., vol. 18(12), pages 1394-1419, December.

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