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http://arks.princeton.edu/ark:/88435/dsp01dr26z1451
Title: | State Responses to Federal Matching Grants: The Case of Medicaid |
Authors: | Leung, Pauline |
Keywords: | Medicaid matching grants JEL codes: H77, I13, H53 |
Issue Date: | Feb-2021 |
Series/Report no.: | 647 |
Abstract: | While Medicaid is currently financed by open-ended matching, in which the federal government pays an uncapped percentage of program expenditures, there has been interest in trans-forming the financing structure to block grants, which limits federal cost-sharing to a fixed amount. To understand the implications of this reform, I measure the effect of match rates on Medicaid spending by using the variation induced by a kink in the match rate formula. I find that a percentage point increase in the federal match raises per-beneficiary spending by 3 percent. Using this estimate, I discuss the welfare impact of a block grant reform. |
URI: | http://arks.princeton.edu/ark:/88435/dsp01dr26z1451 |
Appears in Collections: | IRS Working Papers |
Files in This Item:
File | Description | Size | Format | |
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647.pdf | 667.14 kB | Adobe PDF | View/Download |
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