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Healthcare Financial News - Extending Medicaid Eligibility May Displace Private Health Coverage

Healthcare Financial News


Tuesday, January 24, 2006
Extending Medicaid Eligibility May Displace Private Health Coverage

A study by the Urban Institute’s Health Policy Center that evaluates initiatives by four states to broaden Medicaid eligibility found mixed results. Public health insurance expansion boosted overall coverage rates for parents in Wisconsin and all adults in Massachusetts, but in New Jersey and California, it displaced existing private insurance and produced little evidence of an overall gain in coverage. The study, published in the journal Health Affairs, cautions policymakers not to have the expectation that extending Medicaid eligibility will only increase coverage for the uninsured. Low-income adults with private insurance may also opt to enroll in Medicaid, which is not necessarily a negative consequence, say the researchers. Replacing inadequate private coverage that has high premiums, deductibles, or co-payments with public coverage may provide families with better health and financial security.

posted on 1/24/2006 12:00:00 PM (CST)  Permalink