Our results suggest that, in its first 10 years, the establishment of universal health insurance for the elderly had no discernible impact on their mortality. However, we find that the introduction of Medicare was associated with a substantial reduction in the elderly%u2019s exposure to out of pocket medical expenditure risk.
How did the introduction of Medicare affect out of pocket spending?
· Specifically, we estimate that, in its first 5 years, Medicare was associated with a 40% decline in out of pocket spending for the top quartile of the out of pocket medical expenditure distribution. For the top decile of the out of pocket spending distribution, we estimate that Medicare was associated with a decline in out of pocket spending of close to 50%.
How does Medicare affect mortality in the United States?
the elderly had no discernible impact on elderly mortality. However, we find a substantial reduction in the elderly's exposure to out of pocket medical expenditure risk. Specifically, we estimate that the introduction of Medicare was associated with a 40% decline in out of pocket spending for the top quartile of the out of pocket spending distribution.
When did Medicare come into effect?
mortality. However, we find a substantial reduction in the elderly’s exposure to out of pocket medical expenditure risk. Specifically, we estimate that the introduction of Medicare was associated with a forty percent decline in out of pocket spending for the top quartile of the out of pocket spending distribution. A
Does Medicare increase out-of-pocket medical expenditure risk for the elderly?
Our results suggest that, in its first 10 years, the establishment of universal health insurance for the elderly had no discernible impact on elderly mortality. However, we find a substantial reduction in the elderly's exposure to out of pocket medical expenditure risk. Specifically, we estimate that the introduction of Medicare was associated with a 40% decline in out of pocket …
How does Medicare impact the healthcare system?
Providing nearly universal health insurance to the elderly as well as many disabled, Medicare accounts for about 17 percent of U.S. health expenditures, one-eighth of the federal budget, and 2 percent of gross domestic production.
How did Medicare help society?
#Medicare plays a key role in providing health and financial security to 60 million older people and younger people with disabilities. It covers many basic health services, including hospital stays, physician services, and prescription drugs.
What are three problems that are created by the Medicare program?
Although there are many more, let me mention just three big problems with the current Medicare system: The current Medicare system makes fraud easy. The bookkeeping is broken. The problem resolution system is lousy.
How does Medicare effect the economy?
Medicare for All could decrease inefficient “job lock” and boost small business creation and voluntary self-employment. Making health insurance universal and delinked from employment widens the range of economic options for workers and leads to better matches between workers' skills and interests and their jobs.
How has Medicare been successful?
Medicare's successes over the past 35 years include doubling the number of persons age 65 or over with health insurance, increasing access to mainstream health care services, and substantially reducing the financial burdens faced by older Americans.
What is the goal of Medicare?
Medicare's purpose is to provide national health coverage to the following: Older adults, age 65 and over. This has been a traditional retirement age, when health insurance coverage through an employer might typically end.
What is one of the major problems faced by Medicare?
Financing care for future generations is perhaps the greatest challenge facing Medicare, due to sustained increases in health care costs, the aging of the U.S. population, and the declining ratio of workers to beneficiaries.
What problem was the Medicare program?
The special economic problem which stimulated the development of Medicare is that health costs increase greatly in old age when, at the same time, income almost always declines. The cost of adequate private health insurance, if paid for in old age, is more than most older persons can afford.
What are the disadvantages of Medicare?
Cons of Medicare AdvantageRestrictive plans can limit covered services and medical providers.May have higher copays, deductibles and other out-of-pocket costs.Beneficiaries required to pay the Part B deductible.Costs of health care are not always apparent up front.Type of plan availability varies by region.More items...•
How does Medicare and Medicaid affect the US economy?
Historical NHE, 2020: NHE grew 9.7% to $4.1 trillion in 2020, or $12,530 per person, and accounted for 19.7% of Gross Domestic Product (GDP). Medicare spending grew 3.5% to $829.5 billion in 2020, or 20 percent of total NHE. Medicaid spending grew 9.2% to $671.2 billion in 2020, or 16 percent of total NHE.
What are the pros of Medicare for All?
Pros and Cons of Medicare for AllUniversal healthcare lowers healthcare costs for the economy overall, since the government controls the price of medication and medical services through regulation and negotiation.It would also eliminate the administrative cost of working with multiple private health insurers.More items...•
Who is affected by Medicare?
Medicare is the federal health insurance program for: People who are 65 or older. Certain younger people with disabilities. People with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD)
Abstract
We study the impact of the introduction of one of the major pillars of the social insurance system in the United States: the introduction of Medicare in 1965. Our results suggest that, in its first 10 years, the establishment of universal health insurance for the elderly had no discernible impact on elderly mortality.
Keywords
We are grateful to Susan Athey, Jeff Brown, David Cutler, Dennis Epple, Jonathan Gruber, Darius Lakdawalla, Adriana Lleras-Muney, Ellen Meara, Ben Olken, Jonathan Skinner, participants at the NBER Summer Institute and the 2006 American Economic Association meetings, and two anonymous referees for helpful comments, to Sarah Levin for outstanding research assistance, and to the Harvard Milton Fund for financial support..
Abstract
We study the impact of the introduction of one of the major pillars of the social insurance system in the United States: the introduction of Medicare in 1965. Our results suggest that, in its first 10Â years, the establishment of universal health insurance for the elderly had no discernible impact on elderly mortality.
Suggested Citation
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Non-Technical Summaries
"The overall spread of health insurance between 1950 and 1990 may be able to explain at least 40 percent of that period's dramatic rise...
Published Versions
Finkelstein, Amy and Robin McKnight. "What Did Medicare Do? The Initial Impact of Medicare on Mortality and Out of Pocket Medical Spending." Journal of Public Economics 92 (2008): 1644-1669.
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