Medicaid and fiscal federalism during the COVID‐19 pandemic
Open accessAbstract
We analyze the effects of the COVID‐19 pandemic on state and local government finances, with an emphasis on health spending needs and the role of the Medicaid program. We first find that enhanced federal matching funds are roughly the same size as expected increases in state Medicaid costs nationwide over the entirety of the federal budget window. Second, we show that there is substantial variation in states' exposure to increases in Medicaid program costs. Third, we show that the formulas through which fiscal relief has been distributed impact the extent to which aid targets the states experiencing the greatest need.
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States that participated in Medicaid expansion were statistically significantly more likely to see larger enrollment increases during the first year of the pandemic than those that did not participate, even when controlling for important enrollment drivers such as higher rates of unemployment.
“States that participated in Medicaid expansion were, for example, statistically significantly more likely to see larger enrollment increases during the first year of the pandemic than those which did not participate-even when controlling for important enrollment drivers, such as higher rates of unemployment (Clemens et al., 2021).”
From Policy feedback, varieties of federalism, and the politics of health‐care funding in the United States, Mexico, and Canada (2024) · cites this paper as Clemens et al., 2021
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Béland, D., Marchildon, G. P., Medrano, A., & Rocco, P. (2024) · Politics & Policy · doi:10.1111/polp.12575 · Cited by 7 · see citing works
- Authors
- Clemens, J., Ippolito, B., & Veuger, S.
- Affiliations
- National Bureau of Economic Research (US)
- American Enterprise Institute (US)
- Corresponding author
- Veuger, Stan
- Venue
- Public Budgeting & Finance
- Publisher
- Wiley
- Published
- 2021-05-18
- Volume
- 41
- Issue
- 4
- Pages
- 94-109
- ISSN
- 0275-1100 (ISSN-L)
- 1540-5850
- PMC
- PMC8242625
- OpenAlex
- W3162895189
- Cited by
- 23
- References
- 0
- Citations by year
- 2026: 5 · 2025: 2 · 2024: 3 · 2023: 7 · 2022: 6
- FWCI
- 13.29
- Type
- journal article
- Language
- en
- Open access
- bronze
- doi.org
- Locations
- Public Budgeting & Finance (publishedVersion)
- PubMed Central (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- SSRN Electronic Journal (submittedVersion)
- National Bureau of Economic Research (submittedVersion)
- Topics
- Social Sciences › Political Science and International Relations › Local Government Finance and Decentralization
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Healthcare Policy and Management
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Politics, Economics, and Education Policy
- Keywords
- Medicaid, COVID-19 pandemic, fiscal federalism, federal matching funds, state government finance, local government finance, health spending, pandemic relief
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