Early Medicaid Expansion Related To Reduced Payday Borrowing In Ca

Early Medicaid Expansion Related To Reduced Payday Borrowing In Ca

  1. Heidi Allen (email protected) can be a professor that is associate the institution of Social Perform, Columbia University, in new york.
  2. Ashley Swanson is an assistant teacher of wellness care management in addition to Wharton class Senior Fellow in the Leonard Davis Institute of Health Economics, both in the University of Pennsylvania, in Philadelphia.
  3. Jialan Wang can be a professor that is assistant of at the faculty of company, University of Illinois at Urbana-Champaign.
  4. Tal Gross is definitely an associate professor within the Department of Markets, Public Policy, and Law, Questrom class of company, Boston University, in Massachusetts.

Abstract

We examined the impact of California’s Medicaid that is early expansion the low-cost Care Act in the utilization of pay day loans, a type of high-interest borrowing utilized by low- and middle-income People in america. Making use of a information set for the time scale 2009–13 (approximately twenty-four months before and twenty-four months following the 2011–12 Medicaid expansion) that covered the universe of pay day loans from five big payday loan providers with places across the united states of america, we used a difference-in-differences research design to evaluate the end result associated with expansion on payday borrowing, comparing styles in early-expansion counties in Ca to those in counties nationwide that failed to expand early. The Medicaid that is early expansion related to an 11 % lowering of how many loans applied for every month. Moreover it paid off the sheer number of unique borrowers each and the amount of payday loan debt month.