Scare Talk About 'Crowd-Outs'

Brief

Scare Talk About 'Crowd-Outs'

Commentary

Abstract

[Washington Post] A careful review of the evidence indicates that fewer families than the critics predict will substitute SCHIP for private insurance coverage, a phenomenon known in the policy debate as the "crowd-out" effect. Even when such substitution of public for private coverage occurs, it may provide more comprehensive and continuous coverage for these children, as well as needed financial relief for their families. Moreover, some crowd-out is inevitable in any attempt to ensure that a majority of uninsured children are eligible for health insurance coverage under SCHIP.

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