Contemporaneous and Long-Term Effects of Children's Public Health Insurance Expansions on Supplemental Security Income Participation
- Increased Medicaid generosity for children leads to reductions in SSI applications and awards in states where SSI recipients did not automatically receive Medicaid. A 10 percentage point increase in the estimated share eligible for Medicaid (or 21 percent relative to the mean) was associated with an 11 percent decrease in SSI applications. We attribute the difference in findings to the higher transactions costs associated with entering Medicaid via SSI in such states.
- In the long run, increased Medicaid eligibility during childhood appears to reduce adult SSI applications to some extent, consistent with recent findings that Medicaid coverage in youth improves adult health and economic outcomes. We found that one more year of eligibility during childhood reduced SSI applications by about 3 percent for those ages 20 to 28.
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