Working Paper: NBER ID: w25053
Authors: Sarah Miller; LuoJia Hu; Robert Kaestner; Bhashkar Mazumder; Ashley Wong
Abstract: This article examines how the financial health changes following an individual’s enrollment in Michigan’s Medicaid program (Healthy Michigan Program, HMP). We use unique data that links credit reports of HMP enrollees to Medicaid administrative data on enrollment and use of health care services. We find that Medicaid enrollment is associated with large improvements in several measures of financial health, including reductions in unpaid bills, medical bills, over limit credit card spending, and public records (such as evictions, judgments, and bankruptcies). These improvements are apparent across several subgroups, although individuals with greater medical need, such as those with chronic illnesses, experience the largest benefits.
Keywords: Medicaid; Financial Health; Affordable Care Act; Michigan
JEL Codes: I1; I13; I18
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Medicaid enrollment (I18) | reduction in medical bills in collections (I18) |
| Medicaid enrollment (I18) | decrease in amount of debt past due (H63) |
| Medicaid enrollment (I18) | decline in public records such as evictions, bankruptcies, and wage garnishments (K35) |
| Medicaid enrollment (I18) | improvements in financial health (O16) |
| Medicaid enrollment (I18) | largest benefits for individuals with chronic illnesses (I12) |