Effects of the Medicaid expansion on low-income, childless household savings: Evidence from the Affordable Care Act

Abstract

This article examines the effects of the Medicaid expansion on low-income, childless household savings. I exploit the structural changes in the Medicaid program by the Affordable Care Act, which extended the coverage to childless households and eliminated the asset-test for its eligibility. Analyzing the March Current Population Survey Supplement data, I find that the Medicaid expansion increased unearned income generated from savings for childless households with income below the 100% federal poverty level. However, the Medicaid expansion had no effects on earned or total income for those households.