Medicareamp;apos;s Part D offers heavily subsidized new drug coverage to 22.5 million seniors to date, of whom 16.5 million are in stand-alone drug plans (Department of Health and Human Services, 2006). The government delegated the delivery of the benefit to private insurance companies arguing...

The continued interest in public insurance expansions as a means of covering the uninsured highlights the importance of estimates of quot;crowd-outquot;, or the extent to which such expansions reduce private insurance coverage. Ten years ago, Cutler and Gruber (1996) suggested that such...