Effects of Medicaid Coverage on Work: Evidence From Extending Postpartum Medicaid Coverage

Area of Science:

• Health Economics
• Public Health Policy
• Labor Economics

Background:

• The Family First Coronavirus Response Act (FFCRA) temporarily prohibited Medicaid eligibility redeterminations for 60 days postpartum.
• This policy effectively expanded postpartum Medicaid coverage for many women between March 2020 and March 2023.
• Understanding the impact of this coverage expansion on women's work outcomes is crucial for informing future policy.

Purpose of the Study:

• To evaluate the effects of the FFCRA's expanded postpartum Medicaid eligibility on women's work outcomes.
• To determine if increased Medicaid coverage beyond 60 days postpartum disincentivizes labor force participation, employment, or work hours.

Main Methods:

• A difference-in-differences research design was employed.
• The study utilized data from the 2016-2022 American Community Survey.
• The analysis included 205,104 women aged 19-49 who gave birth within the past 12 months across 41 states and Washington D.C.

Main Results:

• The FFCRA increased postpartum Medicaid coverage by 2.8 percentage points (9.3% relative increase).
• No significant effects were found on labor force participation, employment, weekly work hours, or full-time employment.
• Confidence intervals ruled out substantial declines in employment or full-time employment.

Conclusions:

• The FFCRA's extension of postpartum Medicaid coverage did not lead to declines in women's work outcomes.
• These findings suggest that further extensions of postpartum Medicaid coverage, such as the 12-month extension under the American Rescue Plan, are unlikely to negatively impact work incentives.