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The effect of Medicaid expansion on crime reduction: Evidence from HIFA-waiver expansions

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  • Wen, Hefei
  • Hockenberry, Jason M.
  • Cummings, Janet R.

Abstract

Substance use figures prominently in criminal behavior. As such expanding public insurance and improving access to substance use disorder (SUD) treatment can potentially reduce substance use and reduce crime. We examine the crime-reduction effect of Medicaid expansions through the Health Insurance Flexibility and Accountability (HIFA) waivers. We find that HIFA-waiver expansion led to a sizeable reduction in the rates of robbery, aggravated assault and larceny theft. We also show that much of the crime-reduction effect likely occurred through increasing SUD treatment rate and reducing substance use prevalence. The implied benefit-cost ratio estimate of increased treatment on reducing crime ranges from 1.8 to 3.2.

Suggested Citation

  • Wen, Hefei & Hockenberry, Jason M. & Cummings, Janet R., 2017. "The effect of Medicaid expansion on crime reduction: Evidence from HIFA-waiver expansions," Journal of Public Economics, Elsevier, vol. 154(C), pages 67-94.
    • Handle: RePEc:eee:pubeco:v:154:y:2017:i:c:p:67-94
    DOI: 10.1016/j.jpubeco.2017.09.001
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    More about this item

    Keywords

    Crime; Medicaid expansion; Substance use disorder treatment;
    All these keywords.

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • K14 - Law and Economics - - Basic Areas of Law - - - Criminal Law
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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