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Health Insurance, Health Care and Labor Supply by Older Adults
by Lauren Nicholas
WP 2011-256
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- Comparing the health and economic outcomes of those who receive elective surgery after the onset of chronic conditions with those who do not, this study finds that angioplasty and joint replacement surgery reduce the probability of applying for Social Security Disability Insurance by up to 22 percentage points.
- Elective angioplasty and joint replacement surgery also delay the age at which a respondent first claims Social Security benefits by 1.3–3.5 years.
- Periods of uninsurance after condition onset are associated with lower probability of receiving surgery for patients with heart disease, but not arthritis.
- Increasing access to medical care amongst chronically ill workers may help to reduce new SSDI applications.
- Temporary benefit programs to provide income support to workers taking medical leave to receive surgery, for example, could help to reduce permanent transitions to SSDI.
- Reduction of elective procedure utilization in Medicare could adversely impact the health and economic outcomes of those who have chronic illnesses such as heart disease and arthritis. Cost-effective analysis should factor in savings from elective procedures that prevent or delay health impairment or disability.
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