Panel Paper: Effect of Insurance Subsidies on Health Insurance Coverage

Friday, November 9, 2018
8206 - Lobby Level (Marriott Wardman Park)

*Names in bold indicate Presenter

Yue Li, State University of New York, Albany

This paper investigates the effect of insurance subsidies on household decisions by isolating the effect using subsidy eligibility based on tax filing status: those whose tax filing status is “married filing separately” are not eligible to receive insurance subsidies. I adopt a difference-in-difference strategy that compares the pre- and post-2014 change in insurance coverage, labor market outcomes, and household income for divorced individuals relative to separated individuals in non-Medicaid expansion states. I find that providing insurance subsidies increases insurance coverage by 1.7 percentage points and the labor force participation rate by 0.9 percentage points, and reduces the poverty rate by 0.9 percentage points.

Full Paper: