The first study to show a causal relationship between the ACA's health insurance subsidies and financial stability has been provisionally accepted by the Journal of Public Economics, according to a report from CityLab.
The study uses administrative tax data to determine whether having health insurance coverage affects Americans' ability to pay their rent or mortgage. Researchers compared people on both sides of the federal poverty line in states that did not expand Medicaid to see the effect of insurance.
In nonexpansion states, Medicaid is available to families who earn roughly 45 percent of the FPL or less.
In those states, marketplace subsidies kick in at 100 percent of the FPL or higher, which means people in between these benchmarks don't have access to subsidies or Medicaid. The study compares people right around the threshold — for example, people making 99 percent of the FPL and those making 101 percent — because they have similar financial situations, but some received subsidies for health insurance and others did not receive a benefit.
Comparing the two groups, researchers found the health insurance subsidies did affect people's financial standing. Those who gained subsidized health insurance under the ACA were 25 percent less likely to be late on a rent or mortgage payment, CityLab reports.
Read the full story here.
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