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Economics

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Smith College

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2020

Disability benefits

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The Impact Of The Aca Medicaid Expansion On Disability Program Applications, Lucie Schmidt, Lara D. Shore-Sheppard, Tara Watson Sep 2020

The Impact Of The Aca Medicaid Expansion On Disability Program Applications, Lucie Schmidt, Lara D. Shore-Sheppard, Tara Watson

Economics: Faculty Publications

The Affordable Care Act (ACA) expanded the availability of public health insurance, decreasing the relative benefit of participating in disability programs but also lowering the cost of exiting the labor market to apply for disability benefits. In this paper, we explore the impact of expanded access to Medicaid through the ACA on applications to the Supplemental Security Income (SSI) and Social Security Disability Insurance (SSDI) programs. Using the fact that the Supreme Court decision of June 2012 made the Medicaid expansion optional for the states, we compare changes in county-level SSI and SSDI caseloads in contiguous county pairs across a …