Moral Hazard in Nursing Home Use
- Topics:
- Healthcare Services,
- Insurance
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Overview: Nursing home expenditures are a rapidly growing share of national health care spending with the government functioning as the dominant payer of services. This paper attempts to address this shortcoming using multiple waves of the National Long-Term Care Survey, matched to changing state Medicaid rules for nursing home care. It finds consistent evidence of no effect of Medicaid policies on nursing home utilization, suggesting that demand for nursing home care is relatively inelastic. From a policy perspective, this finding indicates that changes in overall Medicaid generosity will not have large effects on utilization.
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Format: PDF | Size: 158KB | Date: Oct 2005 | Pages: 30
