HOW DOES MEDICARE ELIGIBILITY AFFECT CHOICE AND UTILIZATION?: EVIDENCE FROM VETERANS
2024

Impact of Medicare Eligibility on Veterans' Health Care Choices

publication

Author Information

Author(s): Aouad Marion, Rose Liam, Wagner Todd

Primary Institution: University of California Irvine

Hypothesis

How does Medicare eligibility affect choice and utilization of health care among veterans?

Conclusion

Medicare eligibility at age 65 leads to increased hospitalizations and a significant shift in care choices among veterans.

Supporting Evidence

  • Hospitalizations increase by approximately 3 percent at age 65.
  • Individuals increasingly choose the new Medicare option for hospitalizations, with a 70 percent increase relative to the pre-65 share.
  • Use of VHA and commercial insurers declines by approximately 7 and 51 percent, respectively, compared to the pre-65 share.
  • Larger reallocations toward Medicare are observed among those living closer to Medicare hospitals.

Takeaway

When veterans become eligible for Medicare at age 65, they tend to go to the hospital more and choose Medicare over other insurance options.

Methodology

Regression discontinuity methods were used to analyze changes in inpatient health care behaviors.

Participant Demographics

Veterans receiving care from the Veterans Health Administration.

Digital Object Identifier (DOI)

10.1093/geroni/igae098.2456

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