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Economics, Neuroeconomics, and the Problem of Identity

Author

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  • Wagner, Kathryn L.

    (Department of Economics Marquette University)

Abstract

Medicaid reimburses healthcare providers for services at a lower rate than any other type of insurance coverage. To account for the burden of treating Medicaid patients, providers claim that they must cost-shift by raising the rates of individuals covered by private insurance. Previous investigations of cost-shifting has produced mixed results. In this paper, I exploit a disabled Medicaid expansion where crowd-out was complete to investigate cost-shifting. I find that hospitals reduce the charge rates of the privately insured. Given that Medicaid is expanding in several states under the Affordable Care Act, these results may alleviate cost-shifting concerns of the reform

Suggested Citation

  • Wagner, Kathryn L., 2016. "Economics, Neuroeconomics, and the Problem of Identity," Working Papers and Research 2016-04, Marquette University, Center for Global and Economic Studies and Department of Economics.
    • Handle: RePEc:mrq:wpaper:2016-04
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    File URL: http://epublications.marquette.edu/econ_workingpapers/54
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    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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