Friday, September 6, 2013

What happened when Tennessee kicked 170,000 out of medicaid?

They started looking for jobs:
We ... find an immediate increase in job search behavior and a steady rise in both employment and health insurance coverage following the disenrollment. Our results suggest a significant degree of “employment lock” – workers employed primarily in order to secure private health insurance coverage. The results also suggest that the Affordable Care Act – which similarly affects adults not traditionally eligible for public health insurance – may cause large reductions in the labor supply of low-income adults.
HT: Larry


  1. Luke-
    I am new and naive but data here:

    shows Tennessee employment increasing less robustly than the national average during 2006-2007

    Reid Finlayson

  2. the authors of the paper chose other southern states for the control group. Is this better than the national average?

  3. The Impact of Medicaid on Labor Force Activity and Program Participation: Evidence from the Oregon Health Insurance Experiment
    Katherine Baicker, Amy Finkelstein, Jae Song, Sarah Taubman
    NBER Working Paper No. 19547
    Issued in October 2013
    NBER Program(s): HC LS
    In 2008, a group of uninsured low-income adults in Oregon was selected by lottery for the chance to apply for Medicaid. We use this randomized design and 2009 administrative data to evaluate the effect of Medicaid on labor market outcomes and participation in other social safety net programs. We find no significant effect of Medicaid on employment or earnings: our 95 percent confidence intervals allow us to reject that Medicaid causes a decline in employment of more than 4.4 percentage points, or an increase of more than 1.2 percentage points. We find that Medicaid increases receipt of food stamps, but has little, if any, impact on receipt of other government benefits, including SSDI.