Usa Medicaid Program: A Significant Income Support Program
Description of Program
Medicaid is a program that gives health coverage to millions of American people. It focuses on people that make low incomes, including adults, pregnant women, along with people that are disabled. The program is run by the state and follows federal requirements. It is funded by the state together with the government. The program was signed into action in the year 1965. All states in the United States of America have the program in a way that is planned to give health coverage. Every state that has the program work in a certain way that is different from the others. The health program was endorsed by the Affordable Care Act, which gave states the right to provide health benefits to low earners. In the year 2015, Medicaid celebrated its 50th birthday. All through the years, it has proved to be successful in the income program marketplace has it has given cheap coverage and fostered the care for individuals that are paid less. It is the most significant funding health program in the United States of America.
Objective of Program
Moreover, Medicaid also gives benefits that are not provided by the Medicare unit. They provide services like nursing home care, along with individual care services. Verified health institutions describe the program as a government-funded initiative that helps those that can’t afford access to medical services.
Incentive Effects
It is clear that the program changes work incentives. When the eligible people are provided with funding on health matters, they may take advantage and stay out of the labor force. Since the program provides funding to mostly unmarried women along with children, the government immediately assumes that they do not require any other form of public assistance. They are later excluded from welfare duty. It creates a kind of “take it or leave it” fund donations hence induce a lot of workers to exit the labor market. The people that are eligible for the program are highly to choose the wellbeing solution, unlike job opportunities. It gets to a point known as the endorsement point where there are minimal chances of the eligible people to get into the job market at all. It is essential to realize that the program does not, at any opportunity reduce the workforce participation rates of low earning workers since the workers do not have a work ethic. Instead, the program works at minimizing work incentives of people that are lowly paid. It reduces their incentives because, in most cases, it is the workers that see that the chances given by the program are better than the one provided by the job market.
Empirical Evidence of Program
Medicaid is continuously being spread in different states all over the United States of America. It keeps increasing and improving medical care for a lot of people. It has proved to be highly effective in its performance as it provides accessibility of medical care along with funds. The program is covering at least sixty million lowly paid Americans, and the overall number keeps rising daily.
Effect on labor supply
It is effortless to explain how Medicaid changes participants' mentality in the labor market. Supposing a participant does not go to work at all and manages to get around 500$ on the program for her health benefit and does not possess any other form of getting funds, her income during that months remains at 500$. Supposing that the state takes at least 50 cents from the funds, she is being given by the program; it means that it is taking away her earned monthly income money. If the participant works for precisely one hour and being paid a sum of 10$, the participant's labor earnings are seen to be upgrading by 10$, but the funding is depreciating. The exact amount paid to the participant raises an amount of 505$. By decreasing the participant’s funding amount, the state is charging the participant a rate of 50%. Hence the participants need to differentiate between their real salary rate along with the net salary. The program affects the salary rates outcomes along with the job outcomes.
Economic theory
They have been a lot of arguments on whether the empirical evidence on the program corresponds with the economic theory. The theory states that the movement into a more closed labor marketplace profoundly impacts the salary structure in the same market by upgrading the salary of the matching employees and minimizing the wages of the substitutes. From the discussion above, it is clear that I agree with the theory of economics. The current economy concept identifies that their lies a considerable dissimilarity in economics along with natural sciences. The significant aspect of the method is that it affects the timing of the economy. It makes people reason that they might end up losing their expectations. There are new models, together with theories that have been set to advance and extend the research of the economic concept.
Considerations
From the research has been conducted about the program, it is obviously that the program is highly successful although it affects the workforce of participants. The world is all about changing the environment that exists among human beings. What the program has done is creating a bridge that connects low-income earners to medical care. Millions of people have benefited from the program as, without the plan, there would be cases of health issues that could prolyl lead to deaths of many. At one point in my life, I would like to create an income program that deals with the environment. I would appreciate being a part of a population that is trying to save humanity along with the world.
Conclusion
In summary, Medicaid has taken an extraordinary role in aiding many states along with various territories in responding to public health tragedies. The program has managed to manage natural calamities together with human-made disasters. It would be necessary for the population to join arms and support the program as since it was started. It is also essential to spread the news about the program to those that are facing financial issues and cannot access better health care.
References
- Bargain, O. , & Peichl, A. (2016). Own-wage labor supply elasticities: variation across time and estimation methods. IZA Journal of Labor Economics, 5(1), 10.
- Evans, G. W. , & Honkapohja, S. (2015). Expectations, Economics of.
