The Crowding Out of Private Health Insurance of State Children Health Insurance Program in US

Abstract

This paper estimates the crowd-out of private health insurance following SCHIP expansions for children. This study uses panel data from the 2001 panel of the Survey of Income and Program Participation (SIPP). This research uses Multivariate regression models to the crowd-out of private health insurance. This difference-in-differences approach controls for other factors that affect both the control group and treatment group, and measures the extent of crowd-out private coverage in the treatment group relative to the control group. This paper provides evidence that the SCHIP expansions have overall displacement affect of 52.9 percent for private coverage for those children who had private coverage or were uninsured from the first interview in 2001.