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Study Finds Expanding Medicaid Means Fewer People with Jobs

Photo by Michael Longmire on Unsplash

Americans are generous, and most of us want to expand healthcare coverage — a noble goal. But the question is how to balance costs and benefits, and whether expanding government healthcare instead of private insurance is the way to go.

On balance, societies that offer more private insurance have greater medical innovation. And new evidence suggests that expanding government insurance results in fewer people working. This isn’t good for America’s future economic trajectory.

As noted by economist Tyler Cowen (via Ben Southwood), Thomas Wind, a graduate student at Georgetown University reported from his thesis:

I find a significant negative relationship between Medicaid expansion and labor force participation, in which expanding Medicaid is associated with 1.5 to 3 percentage point drop in labor force participation.

Americans are generally dissatisfied with the Affordable Care Act (I personally lost my doctor when I moved to an exchange plan), and this new study suggests that beyond the hassle of rising premiums it also has a bad effect on jobs, too.

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