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Medicaid In Early Childhood May Have Longterm Benefits

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New research suggests that expanding publicly funded health insurance to low-income children could have long-term benefits for adult health.

Researchers from the University of Maryland found that exposure to Medicaid in early childhood, from birth through age 5, is associated with significant improvements in adult health (age 25 to 54). The research suggests that the improvement in health may be linked to greater access to and use of health services by children whose families received Medicaid, and a decreased economic burden on families from medical expenses and debt.

Medicaid is a major federal program that, according to a 2013 study, provides coverage to 35 percent (28 million) of children under age 19 and, accounts for 8 percent of all federal spending, according to a 2012 study. As the Affordable Care Act has led to expansion of Medicaid in some states, while others states have opted out, understanding the long-term effects of investments in children's health is of increasing importance.

 "There's growing recognition that what happens to you as a child is carried with you throughout life," Dr. Michel H. Boudreaux, lead researcher and assistant professor in the Department of Health Services Administration at the University of Maryland School of Public Health, said in a statement. "Investing in young children could have important payoffs and our study suggests that the benefits of Medicaid may persist for decades into the future."

For the study, researchers were able to isolate Medicaid's impact during early childhood on the midlife health and economic status of low-income children. Rather than examine individual families' use of Medicaid services, researchers compared the period of time from conception to sixth birthday that low-income children were eligible for Medicaid. Using data on adults from the Panel Study of Income Dynamics, researchers compared cohorts who had no opportunity to receive Medicaid in early childhood, some exposure, and full exposure from conception through age five.

They found that greater exposure to Medicaid during early childhood was associated with a significant and meaningful improvement in midlife health using a composite index that combines information on high blood pressure, diabetes, heart disease/heart attack, and obesity. Low-income children's exposure to Medicaid throughout early childhood relative to no exposure is associated with a 22 percent decrease in the prevalence of high blood pressure among adults. Researchers also examined the economic impact of exposure to Medicaid in early childhood on adult economic status, but were unable to show a significant association.

The new study provides critical new information that has important implications for federal and state Medicaid policy, according to Genevieve Kenney, co-director of the Urban Institute's Health Policy Center.

The findings are detailed in the Journal of Health Economics.

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