Impacts of insurance expansion on health cost, health access, and health behaviors: evidence from the medicaid expansion in the US

Prabal K. De ()
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Prabal K. De: The Graduate Center, City University of New York

International Journal of Health Economics and Management, 2021, vol. 21, issue 4, No 5, 495-510

Abstract: Abstract Expansion of subsidized health insurance may result in both safer and riskier health behavior and outcomes. While having insurance lowers cost barriers to receive both usual and preventive care, the lower potential cost from adverse health events may also promote risky behavior. In this paper, I exploit expansion in the Medicaid program under the Affordable Care Act to estimate the impact of insurance expansion on health outcomes and behaviors for low-income individuals in the US. I find that expansion of coverage has significantly lowered cost and increased access, particularly among minority populations, but has had no significant impact on preventive health behaviors. At the same time, I also find no evidence of moral hazard or increase risky behavior like smoking and drinking among residents of expansion states.

Keywords: ACA; Medicaid expansion; Moral hazard; Health behavior (search for similar items in EconPapers)
JEL-codes: I12 I13 I28 (search for similar items in EconPapers)
Date: 2021
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DOI: 10.1007/s10754-021-09306-5

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