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Medicaid is a Sound Investment for the Nation

Recent research published by the National Bureau of Economic Research found that health coverage expansion confers substantial benefits on children when they reach adulthood. The longitudinal study used administrative data from the IRS to examine the effects of children's eligibility in Medicaid and the Children's Health Insurance Program (CHIP) over time. Specifically, the researchers found that individuals who were eligible for Medicaid or CHIP as children had higher cumulative wages by age 28 than their peers, and that the federal government will recoup 56 cents of each dollar spent on childhood Medicaid by the time those children reach age 60. In addition, the researchers note that this analysis did not account for benefits, such as decreased mortality and increased college attendance, that accrue directly to covered children.

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