Home > Events & News > Brown Bag Schedule . Archive

PSC In The News

RSS Feed icon

Former trainee Herbert says residential squatters may be a good thing

Work by Couper, Farley et al. shows impact of racial composition on neighborhood choice

Thompson details killings and shaping of official narrative in 1971 Attica prison uprising

More News

Highlights

Michigan ranked #12 on Business Insider's list of 50 best American colleges

Frey's new report explores how the changing US electorate could shape the next 5 presidential elections, 2016 to 2032

U-M's Data Science Initiative offers expanded consulting services via CSCAR

Elizabeth Bruch promoted to Associate Professor

Next Brown Bag

PSC Brown Bags
will resume fall 2016

psc brown bag iconHealth Insurance, Utilization and Mortality: Evidence from Medicare's Origins

Kenneth Chay (Department of Economics and Community Health, Brown University)

11/07/2011, at noon in room 6050 ISR-Thompson.

We examine Medicare’s impact on hospital insurance, utilization and mortality rates. The analysis applies an “age discontinuity” design to data both before and after Medicare’s introduction. We find that Medicare: i) increased hospital utilization and costs among the elderly, but at a lower rate than previously found; and ii) significantly increased life expectancy in the eligible population. The mortality reductions exhibit an age discontinuity only after Medicare's introduction – patterns not found in nations that did not introduce a Medicare-style program in the 1960’s – with deaths due to heart disease and stroke accounting for most of these reductions. We estimate that Medicare’s introduction had a cost-per-life year ratio below $200 (in 1982-84 dollars). We also analyze changes over time in Medicare’s impact and the characteristics of the "marginal" person who benefited from coverage. We find that the age-65 discontinuity in insurance rates fell over time, more so for blacks, the less-educated, poor and disabled; and that Medicare’s salience rises in recessions. We present evidence that the benefit-cost ratios of Medicare fell during the 1980s, partly due to changes in Medicare’s reimbursement formula.


  View All