What is the Marginal Benefit of Payment-Induced Family Care?

Working Paper: NBER ID: w22249

Authors: Norma B. Coe; Jing Guo; R. Tamara Konetzka; Courtney Harold Van Houtven

Abstract: Research on informal and formal long-term care has centered almost solely on costs; to date, there has been very little attention paid to the benefits. This study exploits the randomization in the Cash and Counseling Demonstration and Evaluation program and instrumental variable techniques to gain causal estimates of the effect of family involvement in home-based care on health care utilization and health outcomes. We find that family involvement significantly decreases Medicaid utilization. Importantly, we find family involvement significantly lowers the likelihood of urinary tract infections, respiratory infections, and bedsores, suggesting that the lower utilization is due to better health outcomes.

Keywords: long-term care; family caregiving; Medicaid; health outcomes

JEL Codes: I11; I13; I28


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Family involvement in home-based care (D13)Medicaid utilization (I18)
Family involvement in home-based care (D13)Adverse health outcomes (I12)
Family involvement in home-based care (D13)Health outcomes (I14)
Family involvement in home-based care (D13)Medicaid spending (I18)

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