Does the ACA Medicaid Expansion Encourage Early Retirement?

TitleDoes the ACA Medicaid Expansion Encourage Early Retirement?
Publication TypeReport
Year of Publication2021
AuthorsOnal, SOzcan
InstitutionUniversity of Wisconsin-Milwaukee
CityMilwaukee, WI
KeywordsAffordable Care Act, Labor force participation, Medicaid, Retirement

In this study, I examine the effect of the Affordable Care Act Medicaid expansion on the
retirement plans of low-educated, childless adults, aged 50-64. I employ a triple-differences
(DDD) methodology, exploiting variation in individuals’ health insurance status and the timing
of the expansion decisions of states. I find that with Medicaid expansion, insured workers
without retirement health insurance (RHI) prior to the expansion decreased full-time work by
7.8 percentage points relative to those with RHI and those without any employer-sponsored
coverage whatsoever. Among those no longer working full-time, 94 percent transitioned to
complete retirement.

Citation Key11873