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

44 Pages Posted: 1 Feb 2018 Last revised: 29 Aug 2023

See all articles by Nathan Blascak

Nathan Blascak

Federal Reserve Bank of Philadelphia

Vyacheslav Mikhed

Federal Reserve Bank of Philadelphia

Abstract

We analyze whether the passage of the Affordable Care Act's dependent coverage mandate in 2010 reduced financial distress for young adults. Using 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 ling 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

JEL Classification: D14, I13, I18

Suggested Citation

Blascak, Nathan and Mikhed, Vyacheslav, Did the ACA’s Dependent Coverage Mandate Reduce Financial Distress for Young Adults?. FRB of Philadelphia Working Paper No. 18-03, Available at SSRN: https://ssrn.com/abstract=3112935 or http://dx.doi.org/10.29338/dp2020-02

Nathan Blascak (Contact Author)

Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States

Vyacheslav Mikhed

Federal Reserve Bank of Philadelphia ( email )

Ten Independence Mall
Philadelphia, PA 19106-1574
United States

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