Housing in Medicaid: Should It Really Change?

Housing is mostly exempted from Medicaid and Supplemental Social Insurance means tests. Reforms of this special treatment have been debated, but little known about its costs, benefits, redistributive implications. I estimate a life cycle model single retirees accounting for exemption. It shows that the homestead exemption explains important patterns recipiency it highly valued. also estate recovery could cover most costs with possibly limited negative welfare consequences. Finally, predicts removing or enforcing programs would reduce redistribution toward lower-income retirees. (JEL D15, G51, H51, I13, I18, I38, J26)