The impact of the 2014 Medicaid expansion on the health, health care access, and financial well‐being of low‐income young adults

Abstract

AbstractPrior to the 2014 Affordable Care Act (ACA) expansion, 37% of young adults ages 19–25 in the United States were low‐income and a third lacked health insurance coverage—both the highest rates for any age group in the population. The ACA's Medicaid eligibility expansion, therefore, would have been significantly beneficial to low‐income young adults. This study evaluates the effect of the ACA Medicaid expansion on the health, health care access and utilization, and financial well‐being of low‐income young adults ages 19–25. Using 2010–2017 National Health Interview Survey data, I estimate policy effects by applying a difference‐in‐differences design leveraging the variation in state implementation of the expansion policy. I show that Medicaid expansion improved health insurance coverage, health care access, and financial well‐being for low‐income young adults in expansion states, but had no effect on their health status and health care utilization. I also find that the policy was associated with larger gains in health coverage for racial minorities relative to their Non‐Hispanic White counterparts. With the continued health policy reform debates at the state and federal levels, the empirical evidence from this study can help inform policy decisions that aim to improve health care access and utilization among disadvantaged groups.