Effects of dependent coverage mandate on household precautionary savings: Evidence from the 2010 Affordable Care Act

Daeyong Lee

Economics Letters, 2016, vol. 147, issue C, 32-37

Abstract: This article examines the effects of the health insurance coverage mandate for young adults on household precautionary savings by focusing on the Affordable Care Act (ACA) of 2010. The ACA dependent coverage mandate allows young adults to remain on their parents’ health insurance plans until their 26th birthday. Using the Survey of Income and Program Participation data, I find that the ACA mandate reduced precautionary savings for households with both parental employer-sponsored health insurance and dependent children aged 19–25 years. These households significantly reduced liquid assets by $897 after ACA, but they did not reduce savings in tax-deferred accounts or real estate assets.

Keywords: Affordable Care Act; Dependent coverage mandate; Precautionary savings (search for similar items in EconPapers)
JEL-codes: D14 G11 H51 I18 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S016517651630297X
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:147:y:2016:i:c:p:32-37

DOI: 10.1016/j.econlet.2016.08.002

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().