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Disability Insurance and Health Insurance Reform: Evidence from Massachusetts

Author

Listed:
  • Nicole Maestas
  • Kathleen J. Mullen
  • Alexander Strand

Abstract

As health insurance becomes available outside of the employment relationship as a result of the Affordable Care Act (ACA), the cost of applying for Social Security Disability Insurance (SSDI)–potentially going without health insurance coverage during a waiting period totaling 29 months from disability onset–will decline for many people with employer-sponsored health insurance. At the same time, the value of SSDI and Supplemental Security Income (SSI) participation will decline for individuals who otherwise lacked access to health insurance. We study the 2006 Massachusetts health insurance reform to estimate the potential effects of the ACA on SSDI and SSI applications.

Suggested Citation

  • Nicole Maestas & Kathleen J. Mullen & Alexander Strand, 2014. "Disability Insurance and Health Insurance Reform: Evidence from Massachusetts," American Economic Review, American Economic Association, vol. 104(5), pages 329-335, May.
    • Handle: RePEc:aea:aecrev:v:104:y:2014:i:5:p:329-35
    Note: DOI: 10.1257/aer.104.5.329
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    Citations

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    Cited by:

    1. Anand Priyanka & Hyde Jody Schimmel & Colby Maggie & O’Leary Paul, 2018. "The Impact of Affordable Care Act Medicaid Expansions on Applications to Federal Disability Programs," Forum for Health Economics & Policy, De Gruyter, vol. 21(2), pages 1-20, December.
    2. Chatterji, Pinka & Li, Yue, 2017. "Early coverage expansions under the Affordable Care Act and Supplemental Security Income participation," The Journal of the Economics of Ageing, Elsevier, vol. 10(C), pages 75-83.
    3. Heim, Bradley & Lurie, Ithai & Mullen, Kathleen J. & Simon, Kosali, 2021. "How Much Do Outside Options Matter? The Effect of Subsidized Health Insurance on Social Security Disability Insurance Benefit Receipt," Journal of Health Economics, Elsevier, vol. 76(C).
    4. Becky Staiger & Madeline Helfer & Jessica Van Parys, 2024. "The effect of Medicaid expansion on the take‐up of disability benefits by race and ethnicity," Health Economics, John Wiley & Sons, Ltd., vol. 33(3), pages 526-540, March.
    5. Philip Armour & Melanie A. Zaber, 2020. "Does Student Loan Forgiveness Drive Disability Application?," NBER Working Papers 26787, National Bureau of Economic Research, Inc.
    6. Garrett Anstreicher, 2021. "Does increasing health care access reduce disability insurance caseloads? Evidence from the rural United States," Health Economics, John Wiley & Sons, Ltd., vol. 30(4), pages 786-802, April.
    7. Matthew Hill & Nicole Maestas & Kathleen J. Mullen, 2014. "Source of Health Insurance Coverage and Employment Survival Among Newly Disabled Workers Evidence from the Health and Retirement Study," Working Papers WR-1040, RAND Corporation.
    8. Mark Duggan & Melissa S. Kearney & Stephanie Rennane, 2015. "The Supplemental Security Income (SSI) Program," NBER Working Papers 21209, National Bureau of Economic Research, Inc.
    9. Li, Yue, 2018. "Paradoxical effects of increasing the normal retirement age: A prospective evaluation," European Economic Review, Elsevier, vol. 101(C), pages 512-527.
    10. Lucie Schmidt & Lara D. Shore-Sheppard & Tara Watson, 2020. "The Impact of the ACA Medicaid Expansion on Disability Program Applications," American Journal of Health Economics, University of Chicago Press, vol. 6(4), pages 444-476.
    11. Jody Schimmel Hyde & Priyanka Anand & Maggie Colby & Lauren Hula & Paul O'Leary, "undated". "The Impact of Affordable Care Act Medicaid Expansions on Applications to Federal Disability Programs," Mathematica Policy Research Reports dffdcdfba16f4084890300ac0, Mathematica Policy Research.
    12. Burns, Marguerite & Dague, Laura, 2017. "The effect of expanding Medicaid eligibility on Supplemental Security Income program participation," Journal of Public Economics, Elsevier, vol. 149(C), pages 20-34.
    13. Michael Levere & Heinrich Hock & Nancy Early, 2021. "How does losing health insurance affect disability claims? Evidence from the Affordable Care Act's dependent care mandate," Health Economics, John Wiley & Sons, Ltd., vol. 30(5), pages 932-950, May.
    14. Jansen, Laura & Angelini, Viola & Groneck, Max & van Ooijen, Raun, 2025. "Do Stronger Employer Responsibilities Enhance Workplace Accommodation for Sick-Listed Workers? Evidence from a Dutch Reform," IZA Discussion Papers 17606, Institute of Labor Economics (IZA).
    15. Ghosh, Ausmita & Simon, Kosali & Sommers, Benjamin D., 2019. "The Effect of Health Insurance on Prescription Drug Use Among Low-Income Adults:Evidence from Recent Medicaid Expansions," Journal of Health Economics, Elsevier, vol. 63(C), pages 64-80.
    16. repec:mrr:papers:wp341 is not listed on IDEAS
    17. Mark Duggan & Melissa S. Kearney & Stephanie Rennane, 2015. "The Supplemental Security Income Program," NBER Chapters, in: Economics of Means-Tested Transfer Programs in the United States, Volume 2, pages 1-58, National Bureau of Economic Research, Inc.
    18. Michael Levere & Heinrich Hock & Nancy Early, "undated". "How Does Losing Health Insurance Affect Disability Claims? Evidence from the Affordable Care Act’s Dependent Care Mandate," Mathematica Policy Research Reports a06bcb7b194241b5a2f1c6713, Mathematica Policy Research.
    19. Michael Levere & Sean Orzol & Lindsey Leininger & Nancy Early, "undated". "Contemporaneous and Long-Term Effects of Children's Public Health Insurance Expansions on Supplemental Security Income Participation," Mathematica Policy Research Reports 92d140d1a39741c481c4630bb, Mathematica Policy Research.
    20. Pinka Chatterji & Yue Li, 2016. "Early Effects of the 2010 Affordable Care Act Medicaid Expansions on Federal Disability Program Participation," NBER Working Papers 22531, National Bureau of Economic Research, Inc.

    More about this item

    JEL classification:

    • G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies; Actuarial Studies
    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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