Including Health Insurance in Poverty Measurement: The Impact of Massachusetts Health Reform on Poverty /

Korenman, Sanders.

Including Health Insurance in Poverty Measurement: The Impact of Massachusetts Health Reform on Poverty / Sanders Korenman, Dahlia K. Remler. - Cambridge, Mass. National Bureau of Economic Research 2016. - 1 online resource: illustrations (black and white); - NBER working paper series no. w21990 . - Working Paper Series (National Bureau of Economic Research) no. w21990. .

February 2016.

We develop and implement what we believe is the first conceptually valid health-inclusive poverty measure (HIPM)--a measure that includes health care or insurance in the poverty needs threshold and health insurance benefits in family resources--and we discuss its limitations. Building on the Census Bureau's Supplemental Poverty Measure, we construct a pilot HIPM for the under-65 population under ACA-like health reform in Massachusetts. This pilot is intended to demonstrate the practicality, face validity and value of a HIPM. Results suggest that public health insurance benefits and premium subsidies accounted for a substantial, one-third reduction in the poverty rate. Among low-income families who purchased individual insurance, premium subsidies reduced poverty by 9.4 percentage points.




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