James C. Capretta | Regulatory Transparency Project
by Scott W. Atlas via Defining Ideas
Incentivize consumers to seek value, increase the supply of care, and stimulate competition among providers.
Jeffrey Clemens and Benedic N. Ippolito | National Bureau of Economic ResearchIn their most recent NBER working paper, Jeffrey Clemens and Benedic Ippolito analyze the potential reforms to Medicaid financing through the lens of fiscal federalism. They argue that because Medicaid plays a prominent role in state government finances, Medicaid financing reforms have significant fiscal implications. Their paper assesses the implications of alternative Medicaid financing structures along several dimensions. The authors’ analysis helps illustrate how the design of federal transfers shapes states’ incentives and therefore helps determine the generosity of the redistribution that occurs through states’ Medicaid programs.