The credit consequences of unpaid medical bills

@article{Brevoort2020TheCC,
  title={The credit consequences of unpaid medical bills},
  author={Kenneth P. Brevoort and Daniel Grodzicki and Martin B. Hackmann},
  journal={Journal of Public Economics},
  year={2020},
  volume={187},
  pages={104203}
}

Financial Consequences of Health Insurance: Evidence from the ACA's Dependent Coverage Mandate

Estimates show that increasing access to health insurance lowered young adults’ out-of-pocket medical expenditures, debt in third-party collections, and the probability of personal bankruptcy, but most improvements in financial outcomes are transitory, as they diminish after an individual ages out of the mandate at age 26.

Health insurance, medical debt, and financial well-being.

The results help clarify the role of health insurance in broader financial health and suggest that, at least among the populations studied here, medical debts in collection may often be a symptom rather than a cause of wider financial distress as measured on credit reports.

The ACA Medicaid Expansion in Michigan and Financial Health

It is found that enrollment in the Healthy Michigan Program is associated with large improvements in several measures of financial health, including reductions in unpaid bills, medical bills, over limit credit card spending, delinquencies, and public records.

The Effect of Health Insurance on Home Payment Delinquency: Evidence from ACA Marketplace Subsidies

Abstract We use administrative tax data and survey responses to quantify the effect of subsidized health insurance on rent and mortgage delinquency. We employ a regression discontinuity (RD) design,

Public Health Insurance and Medical Spending: Evidence from the ACA Medicaid Expansion

It is found that public insurance eligibility reduced mean OOP by 18.2% among targeted households, but it did not causally increase total expenditures among beneficiaries.

Health Insurance as an Income Stabilizer

Eligibility for sub-sidized Marketplace insurance is associated with a 16% and 9% decline in the rates of unexpected job loss and income loss, respectively, suggesting a health-productivity link.

Does Medicare Reduce Medical Debt?

It is hypothesized that Medicare mainly decreases medical collections among those who transition from uninsured to Medicare, and a “treatment on the treated” average reduction of about $250 in new medical collections is estimated.

Medical Debt in the US, 2009-2020.

This study provides an estimate of the amount of medical debt in collections in the US based on consumer credit reports from January 2009 to June 2020, reflecting care delivered prior to the COVID-19 pandemic, and suggests that the amountof medical debt was highest among individuals living in the South and in lower-income communities.

Missouri’s Medicaid Contraction and Consumer Financial Outcomes

Using data from the Medical Expenditure Panel Survey and employing a border discontinuity differences-in-differences empirical strategy, it is shown how these Medicaid cuts increased out-of-pocket medical spending for individuals living in Missouri.

Reinsuring the Insurers of Last Resort

Overall, the authors find that supplemental payments are used to increase access to hospitals in areas with many indigent patients, rather than to provide efficient intertemporal risk-protection to hospitals or incentivize cost control.

References

SHOWING 1-10 OF 46 REFERENCES

Bankruptcy as Implicit Health Insurance

It is shown that uninsured households with a greater financial cost of bankruptcy make higher out-of-pocket medical payments, conditional on the amount of care received, and that households with greater wealth at risk are more likely to hold health insurance.

The Effect of the Patient Protection and Affordable Care Act Medicaid Expansions on Financial Wellbeing

It is found that the Medicaid expansions significantly reduced the number of unpaid bills and the amount of debt sent to third-party collection agencies among those residing in zip codes with the highest share of low-income, uninsured individuals.

The Economic Consequences of Hospital Admissions

For non-elderly adults with health insurance, hospital admissions increase out-of-pocket medical spending, unpaid medical bills and bankruptcy, and reduce earnings, income, access to credit and consumer borrowing.

The ACA Medicaid Expansion in Michigan and Financial Health

It is found that enrollment in the Healthy Michigan Program is associated with large improvements in several measures of financial health, including reductions in unpaid bills, medical bills, over limit credit card spending, delinquencies, and public records.

The Effects of the Massachusetts Health Reform on Household Financial Distress

In this paper, we examine the effect of a major health care reform in Massachusetts on a broad set of financial outcomes using credit report data. We exploit variation in the impact of the reform

The Affordable Care Act Medicaid Expansions and Personal Finance

Using a novel data set from a major credit bureau, the early effects of the Affordable Care Act Medicaid expansions on personal finance are examined, demonstrating financial improvements in states that expanded their Medicaid programs as measured by improved credit scores.

Losing Public Health Insurance: Tenncare Disenrollment and Personal Financial Distress

A main goal of health insurance is to smooth out the financial risk that comes with health shocks and health care. Nevertheless, there has been relatively sparse evidence on how health insurance

The Aggregate Effects of Health Insurance: Evidence from the Introduction of Medicare

The impact of Medicare on hospital spending is over six times larger than what the evidence from individual-level changes in health insurance would have predicted and the overall spread of health insurance between 1950 and 1990 may be able to explain about half of the increase in real per capita health spending over this time period.

The Value of Medicaid: Interpreting Results from the Oregon Health Insurance Experiment

These frameworks for welfare analysis of Medicaid are developed and applied to the Oregon Health Insurance Experiment and it is estimated that low-income uninsured adults’ willingness to pay for Medicaid between $0.5 and $1.2 per dollar of the resource cost of providing Medicaid.