The Impact of Expanding Public Health Insurance on Safety Net Program Participation: Evidence from the ACA Medicaid Expansion

The expansion of public insurance eligibility that occurred with the Affordable Care Act (ACA) Medicaid expansions may have spillover effects to other public assistance programs. We explore the impact of the ACA on two large safety net programs: the Earned Income Tax Credit (EITC) and the Supplemental Nutrition Assistance Program (SNAP). We use a county border-pair research design, examining county-level administrative measures of EITC and SNAP participation in contiguous county pairs that cross state lines where the county on one side of the border experienced the Medicaid expansion and the county on the other side did not. This approach allows us to focus narrowly on differences arising from the ACA Medicaid expansion choice, implicitly controlling for local economic trends that could affect safety net participation. Our results suggest that the Medicaid expansion increased participation in SNAP, and possibly in the EITC, in counties that expanded relative to nearby counties that did not expand. We corroborate and extend these results using individual level data from the American Community Survey (ACS). Our results show that access to one safety net program may increase take-up of others.

[1]  Barış K. Yörük,et al.  The effects of the 2010 Affordable Care Act dependent care provision on family structure and public program participation among young adults , 2019, Review of Economics of the Household.

[2]  L. Shore-Sheppard,et al.  NBER WORKING PAPER SERIES THE IMPACT OF THE ACA MEDICAID EXPANSION ON DISABILITY PROGRAM APPLICATIONS , 2019 .

[3]  Matthew J. Notowidigdo,et al.  Take-Up and Targeting: Experimental Evidence from Snap , 2018, The Quarterly Journal of Economics.

[4]  Alexandre Mas,et al.  Employment Effects of the Affordable Care Act Medicaid Expansions , 2018 .

[5]  Ben Zipperer,et al.  Credible Research Designs for Minimum Wage Studies , 2017, SSRN Electronic Journal.

[6]  David Frisvold,et al.  The impact of expanding Medicaid on health insurance coverage and labor market outcomes , 2016, International Journal of Health Economics and Management.

[7]  Charles Courtemanche,et al.  Impacts of the Affordable Care Act on Health Insurance Coverage in Medicaid Expansion and Non-Expansion States , 2016 .

[8]  R. Kaestner,et al.  Effects of ACA Medicaid Expansions on Health Insurance Coverage and Labor Supply , 2015, Journal of policy analysis and management : [the journal of the Association for Public Policy Analysis and Management].

[9]  D. Schanzenbach,et al.  U.S. Food and Nutrition Programs , 2015 .

[10]  Michael Reich,et al.  Minimum Wage Shocks, Employment Flows, and Labor Market Frictions , 2012, Journal of Labor Economics.

[11]  Laura A. Castner,et al.  Reaching Those in Need: State Supplemental Nutrition Assistance Program Participation Rates in 2008 , 2009 .

[12]  Cristian Pop-Eleches,et al.  Electronic Filing, Tax Preparers, and Participation in the Earned Income Tax Credit , 2005, Journal of Public Economics.

[13]  S. Burney The Impact of the 2014 Medicaid Expansion on SNAP Participation and Benefits , 2018 .

[14]  Lucas Goodman,et al.  The Effect of the Affordable Care Act Medicaid Expansion on Migration. , 2017, Journal of policy analysis and management : [the journal of the Association for Public Policy Analysis and Management].

[15]  B. Sommers,et al.  Medicaid Expansion Did Not Result In Significant Employment Changes Or Job Reductions In 2014. , 2016, Health affairs.

[16]  S. Taubman,et al.  THE IMPACT OF HEALTH INSURANCE EXPANSIONS ON OTHER SOCIAL SAFETY NET PROGRAMS ‡ The Impact of Medicaid on Labor Market Activity and Program Participation: Evidence from the Oregon Health Insurance Experiment † , 2014 .

[17]  B. Sommers,et al.  Moving for medicaid? Recent eligibility expansions did not induce migration from other states. , 2014, Health affairs.

[18]  Maggie R. Jones Changes in EITC Eligibility and Participation, 2005–2009 , 2014 .

[19]  Emmanuel Saez,et al.  Using Differences in Knowledge Across Neighborhoods to Uncover the Impacts of the EITC on Earnings , 2013 .

[20]  D. Neumark,et al.  NBER WORKING PAPER SERIES REVISITING THE MINIMUM WAGE-EMPLOYMENT DEBATE: THROWING OUT THE BABY WITH THE BATHWATER? , 2013 .