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NATIONAL BUREAU OF ECONOMIC RESEARCH

NBER Working Papers by Julie Lee

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Working Papers

January 1999The Distributional Effects of Medicare
with Mark McClellan, Jonathan Skinner: w6910
The Medicare program is now an important source of transfers to elderly and disabled beneficiaries, and will continue to grow rapidly in the future. Because the Medicare program is so large in magnitude, it can have significant redistributional effects. In this paper, we measure the flow of Medicare benefits to high-income and low-income neighborhoods in 1990 and 1995. We find that Medicare spending per capita for the lowest income groups grew much more rapidly than Medicare spending in either high income or middle income neighborhoods. Home health care spending played an important role in the increased spending among the lowest income neighborhoods. To our knowledge, this differential shift in spending has not been documented, yet it exceeds in magnitude the entire per capita transf...

Published: The Distributional Effects of Medicare, Julie Lee, Mark McClellan, Jonathan Skinner. in Tax Policy and the Economy, volume 13, Poterba. 1999

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