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The causes and consequences of medical crowdfunding

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  • Panjwani, Aniket
  • Xiong, Heyu

Abstract

In 2020, an estimated 8 to 12 million Americans started an online fundraising campaign to cover the cost of healthcare. In this paper, we study the causes and consequences of medical crowdfunding using data from GoFundMe, one of the largest online fundraising platforms. First, we show that the ACA Medicaid expansion had a statistically meaningful effect in reducing the number of health-related GoFundMe campaigns. This suggests that the demand for crowdfunded medical care could be driven, in part, by lack of health insurance coverage. Next, we show that the growth of medical crowdfunding can exacerbate group-level inequality by reinforcing existing disparities in health access. Specifically, we document that GoFundMe campaigns organized by individuals with distinctively African-American or Hispanic surnames and first-names are significantly less likely to meet their fundraising target and raise less funds overall than those organized by individuals with neutral or distinctively White names. We conclude by investigating the channels underlying these racial disparities in crowdfunding success.

Suggested Citation

  • Panjwani, Aniket & Xiong, Heyu, 2023. "The causes and consequences of medical crowdfunding," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 648-667.
    • Handle: RePEc:eee:jeborg:v:205:y:2023:i:c:p:648-667
    DOI: 10.1016/j.jebo.2022.11.017
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