Arbeitspapier

Did Medicaid Expansion Reduce Medical Divorce?

Medical divorce occurs when couples split up so that one spouse's medical bills do not deplete the assets of the healthy spouse. It has not been studied in the economics literature, but it has been discussed by attorneys and widely reported in the media. We develop a model of medical divorce that demonstrates that divorce is optimal when a couple's joint assets exceed the exempted asset level. We use the Affordable Care Act's Medicaid expansion which removed asset tests to qualify for Medicaid as exogenous variation in the incidence of divorce (as it was only implemented by some states). We find that the ACA expansion decreased the prevalence of divorce by 11.6% among those ages 50–64 with a college degree. These results are robust to numerous placebo checks including older subsamples (who qualify for Medicare regardless of assets) and earlier years (before the expansion was implemented). Our results suggest that Medicaid expansion reduced medical divorce.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 13487

Classification
Wirtschaft
Taxation, Subsidies, and Revenue: General
Publicly Provided Private Goods
Health Insurance, Public and Private
Marriage; Marital Dissolution; Family Structure; Domestic Abuse
Subject
medicaid expansion
divorce
assets
education

Event
Geistige Schöpfung
(who)
Slusky, David
Ginther, Donna K.
Event
Veröffentlichung
(who)
Institute of Labor Economics (IZA)
(where)
Bonn
(when)
2020

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Slusky, David
  • Ginther, Donna K.
  • Institute of Labor Economics (IZA)

Time of origin

  • 2020

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