How Welfare Reform and Economic Factors Affected Medicaid Participation

Brief

How Welfare Reform and Economic Factors Affected Medicaid Participation

1984-96
February 1, 2000

Abstract

In 1996, the number of people on Medicaid fell for the first time in recent history. This report presents the results of an econometric analysis of the factors that affected state Medicaid participation from 1984-96 and applies these results to estimate which factors contributed to the 1995-96 downturn. The principal finding is that welfare reform and the economy both significantly affected the Medicaid caseload decline at roughly similar levels.

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