Collector - October 2016 - 10
FYI
$100
Average per capita collections
decline in counties most affected by
the Medicaid expansion in 2015.
Source: Federal Reserve Bank of New
York Liberty Street Economics blog
STATE MEDICAID EXPANSION
EXPANDED
NOT EXPANDED
The Financial Benefits of Medicaid
Research shows Medicaid expansion reduces debt sent to collections.
U
.S. counties that expanded
Medicaid since the implementation
of the Affordable Care Act
in the first quarter of 2014, and had a
high uninsured rate before that time,
experienced a decrease in debt sent to
collection agencies, according to a recent
study from researchers at the Federal
Reserve Bank of New York.
Fed analyst Nicole Dussault, economist
Maxim Pinkovskiy and research officer
Basit Zafar reviewed data from the Fed's
Consumer Credit Panel, which includes
financial indicators for consumers across the
U.S. They used the total value of balances
sent to a third-party collection agency within
12 months as a variable of interest.
"Our findings are consistent with prior
research that has provided evidence that
health insurance is good for individual
finances," they wrote in a blog post. They
also noted that their analysis focuses only
on the benefits of the Affordable Care Act
expansion, not the associated costs.
10
As of March 2016, 19 states declined to
expand Medicaid after the U.S. Supreme Court
ruled the government could not mandate the
expansion, according to the researchers.
They reviewed data from the first quarter
of 2009 to the fourth quarter of 2015. "Since
the [Consumer Credit Panel] does not
collect insurance status for its respondents,
we aggregate our data to the county level,"
the researchers wrote. They matched each
county with its uninsured rate in 2013.
"The idea behind this methodology is
that the expansion of Medicaid under the
[Affordable Care Act] should have had a
larger impact on counties that had a high
uninsured rate prior to implementation,"
they wrote. "If Medicaid expansion indeed
decreased collections, we should see
collections fall the most in these highuninsurance-rate-counties."
For example, counties with the highest
uninsured rates in 2013 that expanded
Medicaid had sharp decreases in their
collection balances. The researchers divided
counties into five uninsured rate quintiles
with the fifth being the highest, at an
average uninsured rate of 29.8 percent. The
average rate in the first quintile of counties
was 14.5 percent.
"Collection balances decrease sharply for
fifth quintile counties in Medicaid expansion
states but continue their upward trend for
fifth quintile counties in states that did not
expand Medicaid," according to the report.
"By the fourth quarter of 2015 ... on
average, collections declined by more
than $100 per capita in the counties
most affected by the Medicaid expansion
relative to less affected counties. This
is a sizable decline, given that the
mean of collection balances over our
sample period is $280 (and the standard
deviation is $186.)"
The researchers concluded that early
evidence suggests the Medicaid expansion
is "fulfilling the goal of health insurance,
providing peace of mind by protecting
against financial hardship."
ACAINTERNATIONAL.ORG
http://www.ACAINTERNATIONAL.ORG
Table of Contents for the Digital Edition of Collector - October 2016
President’s Page
Industry News
Best Practices
FYI
Collection Tips
Connect the Dots
Looking Deeper
Head of the Class
Calendar
Honor Roll
The Formula of Five
How to Create Winning Bids and Proposals
A Running Start
ACPAC Election Watch
ACA’s Industry Advancement Program Aids Eleventh Circuit Win for Member Company
Compliance
ACA SearchPoint
Last Word
Collector - October 2016 - Cover1
Collector - October 2016 - Cover2
Collector - October 2016 - 1
Collector - October 2016 - 2
Collector - October 2016 - President’s Page
Collector - October 2016 - Industry News
Collector - October 2016 - 5
Collector - October 2016 - 6
Collector - October 2016 - 7
Collector - October 2016 - Best Practices
Collector - October 2016 - 9
Collector - October 2016 - FYI
Collector - October 2016 - 11
Collector - October 2016 - Collection Tips
Collector - October 2016 - 13
Collector - October 2016 - Connect the Dots
Collector - October 2016 - 15
Collector - October 2016 - 16
Collector - October 2016 - 17
Collector - October 2016 - 18
Collector - October 2016 - 19
Collector - October 2016 - Looking Deeper
Collector - October 2016 - 21
Collector - October 2016 - 22
Collector - October 2016 - 23
Collector - October 2016 - Head of the Class
Collector - October 2016 - 25
Collector - October 2016 - 26
Collector - October 2016 - 27
Collector - October 2016 - Calendar
Collector - October 2016 - Honor Roll
Collector - October 2016 - The Formula of Five
Collector - October 2016 - 31
Collector - October 2016 - How to Create Winning Bids and Proposals
Collector - October 2016 - 33
Collector - October 2016 - 34
Collector - October 2016 - 35
Collector - October 2016 - A Running Start
Collector - October 2016 - 37
Collector - October 2016 - 38
Collector - October 2016 - 39
Collector - October 2016 - ACPAC Election Watch
Collector - October 2016 - 41
Collector - October 2016 - ACA’s Industry Advancement Program Aids Eleventh Circuit Win for Member Company
Collector - October 2016 - 43
Collector - October 2016 - Compliance
Collector - October 2016 - 45
Collector - October 2016 - ACA SearchPoint
Collector - October 2016 - 47
Collector - October 2016 - Last Word
Collector - October 2016 - Cover3
Collector - October 2016 - Cover4
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