The London School of Economics and Political Science
Abstract
An important part of the 2010 Affordable Care Act was the expansion of Medicaid – something which 30 states have taken up. In new research, Jeffrey Clemens finds that not only does expanding Medicaid benefit those who gain coverage; it may also help to improve the performance of Obamacare’s health insurance exchanges. Since those eligible for Medicaid tend to have higher than average health expenses than most on the exchanges, drawing these individuals out of the exchanges means lower premiums for those that use them, making them less likely to opt-out
