Are coresidence and nursing homes substitutes? Evidence from Medicaid spend-down provisions.

TitleAre coresidence and nursing homes substitutes? Evidence from Medicaid spend-down provisions.
Publication TypeJournal Article
Year of Publication2018
AuthorsMommaerts, CD
JournalJ Health Econ
Volume59
Pagination125-138
Date Published2018 05
ISSN Number1879-1646
KeywordsAdult children, Aged, Aged, 80 and over, Female, Health Expenditures, Homes for the Aged, Humans, Long-term Care, Male, Medicaid, Nursing homes, Residence Characteristics, United States
Abstract

This paper measures the extent to which the price of nursing home care affects a potential substitute living arrangement: coresidence with adult children. Exploiting variation in state Medicaid income "spend-down" provisions over time, I find that living in a state with a spend-down provision decreases the prevalence of coresidence with adult children by 1-4 percentage points for single elderly individuals, with a corresponding increase in the use of nursing home care. These findings suggest that changes in Medicaid eligibility for long-term care benefits could have large impacts on living arrangements, care utilization patterns, and Medicaid expenditures.
DOI10.1016/j.jhealeco.2018.04.003
User Guide Notes

http://www.ncbi.nlm.nih.gov/pubmed/29709710?dopt=Abstract
Alternate JournalJ Health Econ
Citation Key10714
PubMed ID29709710
PubMed Central IDPMC5966342
Grant ListT32 AG000186 / AG / NIA NIH HHS / United States