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This would mean that the benefits that the uninsured would receive would vary from state to state. If the state was financially supporting the coverage of the uninsured, then using the Medicaid program as the vehicle for covering the uninsured is understandable. However, under Medicare Part E, the state does not contribute its own funds. A third problem with using the Medicaid program as the primary vehicle for providing insurance to the currently uninsured is the low rates that many Medicaid programs pay to providers.
Gov/mepsweb). 21 22 GERARD F. ANDERSON AND HUGH R. WATERS Table 2-3. S. S. gov/cps/). a. Numbers may not sum to totals due to rounding. for coverage, we assume these take-up rates will be higher than previous estimates. We assume unemployed individuals will join at a 100 percent rate, since they will be unable to obtain insurance coverage through an employer and will find Medicare Part E considerably less expensive than private insurance options in the individual market. Conversely, higher-income individuals are predicted to participate at lower rates because they will be more likely to obtain insurance through an employer or in the individual market (table 2-5).
Table 2-7 shows the number of individuals aged eighteen to sixty-four in the United States who currently have insurance, broken down by income level, health status, and employment status. As crowd-out rates increase, the efficiency of public insurance—comparing costs to the net increase in coverage—decreases. Estimates from the literature suggest that for the privately insured, the short-run elasticity (responsiveness) of take-up to a new program offer is approximately 30 percent as high as the elasticity of take-up among the uninsured (Glied, Remler, and Zivin 2002).