From Business Finance:
By expanding Medicaid coverage, the thinking goes, the previously uninsured will have greater access to ongoing and preventive care, which is much less expensive than emergency room and inpatient care. Of course, this sounds good in theory, but how will it play out in practice? A new study conducted by researchers at the University of California, Irvine starts to answer part of this question by comparing health care costs over time for the newly insured. "In a case study involving low-income people enrolled in a community-based health insurance program, we found that use of primary care increased but use of emergency services fell, and over time total healthcare costs declined," says David Neumark, a professor of economics and director of UCI's Center for Economics & Public Policy study.

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