The Truth About Medicaid and Private Insurance

💡Having Medicaid is better than being uninsured, but private insurance is still preferable.

📚Comparisons between Medicaid and private insurance suffer from confounding factors such as health and wealth.

🔬Randomized controlled trials are needed to accurately compare Medicaid and private insurance.

💰Increased cost-sharing, as proposed in healthcare bills, can lead to lower healthcare use and poorer outcomes.

🩺Private plans with high cost-sharing may be worse than Medicaid for low-income and sick individuals.

Is having Medicaid better than being uninsured?

—Yes, studies have shown that having Medicaid is better than being uninsured.

Is private insurance always better than Medicaid?

—Private insurance is generally considered better, but it depends on factors such as the specific insurance coverage and the individual's health and wealth.

Why are comparisons between Medicaid and private insurance difficult?

—Comparisons are confounded by factors such as the health and wealth of individuals with private insurance.

What is cost-sharing?

—Cost-sharing refers to the portion of healthcare costs that individuals are responsible for paying out of pocket, such as deductibles and copayments.

Why can increased cost-sharing lead to lower healthcare use and poorer outcomes?

—Higher costs can discourage individuals from seeking necessary healthcare, leading to delayed or inadequate treatment and poorer health outcomes.

00:00Contrary to critics, having Medicaid is better than being uninsured, but having private insurance is still preferable.

00:32Comparisons between Medicaid and private insurance suffer from confounding factors such as health and wealth.

02:47Randomized controlled trials are needed to accurately compare Medicaid and private insurance.

05:02Increased cost-sharing, as proposed in healthcare bills, can lead to lower healthcare use and poorer outcomes.

07:50Private plans with high cost-sharing may be worse than Medicaid for low-income and sick individuals.