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Investigating the Effect of Health Insurance in the COVID-19 Pandemic

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Abstract

Does health insurance improve health? This question, while apparently a tautology, has been the subject of considerable economic debate. In light of the COVID-19 pandemic, it has acquired a greater urgency as the lack of universal health insurance has been cited as a cause of the profound racial gap in coronavirus cases, and as a cause of U.S. difficulties in managing the pandemic more generally. However, estimating the effect of health insurance is difficult because it is (generally) not assigned at random. In this post, we approach this question in a novel way by exploiting a natural experiment—the adoption of the Affordable Care Act (ACA) Medicaid expansion by some states but not others—to tease out the causal effect of a type of health insurance on COVID-19 intensity.

Suggested Citation

  • Rajashri Chakrabarti & Lindsay Meyerson & William Nober & Maxim L. Pinkovskiy, 2020. "Investigating the Effect of Health Insurance in the COVID-19 Pandemic," Liberty Street Economics 20200925, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:88781
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    Cited by:

    1. Jeisson Cárdenas & Jaime Montana & Derek Bosworth, 2021. "Which Workers are Most Exposed to covid -19 and Social Distancing Effects in a Dual Labour Market?," Revista de Economía del Rosario, Universidad del Rosario, vol. 24(2), December.

    More about this item

    Keywords

    COVID-19; Affordable Care Act; regression discontinuity;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private

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