Dive Brief:
- States that embraced Medicaid expansion recorded different trends in indebtedness compared to those states that didn't, according to an analysis by researchers at the Federal Reserve Bank of New York.
- Following the ACA's 2014 implementation, the group reported, U.S. counties with a high uninsured rate that subsequently expanded Medicaid saw a decrease in average debt sent to collections agencies, while those that did not embrace expansion saw their collection balance continue upward.
- The findings validated expectations that the quintile of counties with the highest 2013 uninsured rates that expanded Medicaid would see the greatest decrease in collection balances.
Dive Insight:
The authors noted their findings do not consider the associated costs of Medicaid expansion and do not look at its impacts on health, but concluded that as far as protecting people's finances, the ACA is a success. That, they argued, was one of the main drivers behind the implementation of the ACA, echoing a 2015 statement from President Obama that the "whole point of health insurance" is peace of mind.
"While the full effects of the Affordable Care Act on financial health are yet to be seen, and while the effects of the ACA — positive or negative — are not restricted to financial health, we offer suggestive early evidence that the Medicaid expansion is fulfilling the goal of health insurance: providing 'peace of mind' by protecting against financial hardship," the authors wrote.
They suggested further evidence on the financial impact of Medicaid expansion will be revealed as states continue to expand or reduce their coverage, and that it will bevaluable to weight the financial benefits of Medicaid expansion with its associated costs.