The Effect of Health Reform on Retirement

26 Pages Posted: 1 Dec 2015

See all articles by Helen Levy

Helen Levy

University of Michigan at Ann Arbor - Institute for Social Research (ISR); National Bureau of Economic Research (NBER)

Thomas C. Buchmueller

University of California - Paul Merage School of Business - Economics/Health Care; University of Michigan, Stephen M. Ross School of Business; National Bureau of Economic Research (NBER)

Sayeh Nikpay

University of Michigan at Ann Arbor

Date Written: September 2015

Abstract

Many studies have shown that the availability of health insurance is an important determinant of the retirement decision. Beginning in January 2014, the Affordable Care Act (ACA) made affordable alternatives to employer-sponsored health insurance much more widely available than they had been previously through the establishment of health insurance exchanges and, in some states, the expansion of Medicaid eligibility to low-income, childless adults. We analyze whether these new health insurance options led to an increase in retirement or part-time work among individuals ages 55 through 64 during the first 18 months after the policy took effect. Using data from the basic monthly Current Population Survey from January 2005 through June 2015, we find that there was no increase in retirement in 2014 either overall or in Medicare expansion states relative to nonexpansion states. We also find no change in the fraction of older workers who are working part-time.

Keywords: ACA, retirement, Social Security, CPS, Medicare expansion

Suggested Citation

Levy, Helen and Buchmueller, Thomas C. and Nikpay, Sayeh, The Effect of Health Reform on Retirement (September 2015). Michigan Retirement Research Center Research Paper No. 2015-329. Available at SSRN: https://ssrn.com/abstract=2697092

Helen Levy (Contact Author)

University of Michigan at Ann Arbor - Institute for Social Research (ISR) ( email )

Ann Arbor, MI 48106-1248
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Thomas C. Buchmueller

University of California - Paul Merage School of Business - Economics/Health Care ( email )

Irvine, CA 92697-3125
United States

HOME PAGE: http://web.gsm.uci.edu/~tbuchmu/

University of Michigan, Stephen M. Ross School of Business ( email )

701 Tappan Street
Ann Arbor, MI MI 48109
United States

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Sayeh Nikpay

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States

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