Did the ACA's Dependent Coverage Mandate Reduce Financial Distress for Young Adults?

Blascak, Nathan; Mikhed, Vyacheslav

doi:https://doi.org/10.21799/frbp.wp.2018.03

Working Paper

Did the ACA's Dependent Coverage Mandate Reduce Financial Distress for Young Adults?

Abstract: We analyze whether the passage of the Affordable Care Act's dependent coverage mandate in 2010 reduced financial distress for young adults. U sing nationally representative, anonymized consumer credit report information, we find that young adults covered by the mandate lowered their past due debt, had fewer delinquencies, and had a reduced probability of filing for bankruptcy. These effects are stronger in geographic areas that experienced higher uninsured rates for young adults prior to the mandate's implementation. Our estimates also show that some improvements are transitory because they diminish after an individual ages out of the mandate at age 26.

Keywords: Affordable Care Act; health insurance; consumer credit; financial distress;

JEL Classification: D14; I13; I18;

https://doi.org/https://doi.org/10.21799/frbp.wp.2018.03