Medicaid eligibility policy and the crowding-out effect: did women and children drop private health insurance to enroll in Medicaid.

In the late 1980s and early 1990s, the federal government expanded Medicaid eligibility for children and pregnant women. By 1992, nearly a third of all children in the United States were eligible for Medicaid, and between 40 and 50 percent of women of childbearing age were eligible for Medicaid coverage for pregnancy-related services. During this period, the number of persons with employment-based insurance coverage declined, leading researchers to investigate whether Medicaid expansions have contributed to this decline--a so-called crowding-out effect. This Issue Brief discusses research findings and the health policy implications of the crowding-out effect.