Affordable Care Act Medicaid Expansion and Program Participation
Friday, November 3, 2017: 3:15 PM-4:45 PM
Toronto (Hyatt Regency Chicago)
*Names in bold indicate Presenter
Panel Organizers: Shooshan Danagoulian, Wayne State University
Panel Chairs: Shooshan Danagoulian, Wayne State University
Discussants: Shooshan Danagoulian, Wayne State University and Diane Alexander, Federal Reserve Bank of Chicago
The Medicaid expansion mandated by the Affordable Care Act expanded insurance to 12 million adults with income below 138% of FPL. This panel addresses the effect of insurance expansion on the financial well-being and program participation of households. Insurance coverage insulates households from financial shocks resulting from unexpected hospital treatments. Improved access to health insurance, therefore, should result in greater financial stability and reduced dependence on financial support for households at or below poverty threshold. Abramawitz (2017) find that the expansion also allowed low income individuals to switch from high-cost employer sponsored and direct-purchase plans to Medicaid or subsidized plans. Burns et al. (2017) estiamte that in the states were Medicaid expanded, participation in the Supplemental Security Income program decreased by about 3% relative to pre-expansion levels. Overall, the Medicaid expansion has contributed to the financial well-being of households by decreasing incidence of debt and reducing the price of health insurance, and resulting a decrease in participation in income support programs.