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Bankruptcy, medical insurance, and a law with unintended consequences
1Bureau of Economics, Federal Trade Commission, Washington, USA.
Health Economics
|September 17, 2013
Abstract:
Congress passed the Emergency Medical Treatment and Active Labor Act (EMTALA) in 1986, guaranteeing a standard of medical care to anyone who entered an emergency room. This guarantee made default a more reliable substitute for medical insurance. I construct a tractable structural model of the medical insurance market and find that repealing EMTALA would increase the fraction of the population with insurance while decreasing its price.
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