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Medicaid Expansion and the Unemployed

Author

Listed:
  • Thomas C. Buchmueller
  • Helen Levy

  • Robert G. Valletta

Abstract

We examine how a key provision of the Affordable Care Act—the expansion of Medicaid eligibility—affected health insurance coverage, access to care, and labor market transitions of unemployed workers. Comparing trends in states that implemented the Medicaid expansion to those that did not, we find that the ACA Medicaid expansion substantially increased insurance coverage and improved access to health care among unemployed workers. We then test whether this strengthening of the safety net affected transitions from unemployment to employment or out of the labor force. We find no meaningful statistical evidence in support of moral hazard effects that reduce job finding or labor force attachment.

Suggested Citation

  • Thomas C. Buchmueller & Helen Levy & Robert G. Valletta, 2019. "Medicaid Expansion and the Unemployed," Working Paper Series 2019-29, Federal Reserve Bank of San Francisco.
    • Handle: RePEc:fip:fedfwp:86646
    DOI: 10.24148/wp2019-29
    Note: Prepared for presentation at “Defense against the Dark Arts: A labor economics conference in honor of John E. DiNardo,” University of Michigan, September 28-29, 2018. Financial support for this project from the Russell Sage Foundation is gratefully acknowledged. The views expressed in this paper are solely those of the authors and are not attributable to the Federal Reserve Bank of San Francisco or the Federal Reserve System.
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    Cited by:

    1. David J. G. Slusky & Donna K. Ginther, 2021. "Did Medicaid expansion reduce medical divorce?," Review of Economics of the Household, Springer, vol. 19(4), pages 1139-1174, December.
    2. Mann, Samuel, 2021. "Transgender employment and gender marker laws," Labour Economics, Elsevier, vol. 73(C).
    3. Maclean, Johanna Catherine & Webber, Douglas, 2022. "Government regulation and wages: Evidence from continuing coverage mandates," Labour Economics, Elsevier, vol. 78(C).
    4. Joseph Benitez & Kevin Callison & E. Kathleen Adams, 2024. "Joint effects of Medicaid eligibility and fees on recession‐linked declines in healthcare access and health status," Health Economics, John Wiley & Sons, Ltd., vol. 33(7), pages 1426-1453, July.
    5. Moiz Bhai, 2025. "The effect of Certificate‐of‐Need laws on physician earnings and labor supply," Southern Economic Journal, John Wiley & Sons, vol. 92(1), pages 152-175, July.
    6. Hong Chen & Jia Yu & Mingshuai Qin & Yangyang Wang & Lijian Qin, 2023. "Unlocking Opportunities for Migrant Workers in China: Analyzing the Impact of Health Insurance on Hukou Switching Intentions," Sustainability, MDPI, vol. 15(8), pages 1-15, April.
    7. Matt Hampton & Otto Lenhart, 2022. "The effect of the Affordable Care Act Medicaid expansion on marriage," Economic Inquiry, Western Economic Association International, vol. 60(2), pages 568-591, April.

    More about this item

    Keywords

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    JEL classification:

    • A12 - General Economics and Teaching - - General Economics - - - Relation of Economics to Other Disciplines
    • A13 - General Economics and Teaching - - General Economics - - - Relation of Economics to Social Values
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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