Michal Grinstein-Weiss, the Shanti K. Khinduka Distinguished Professor at the Brown School, is co-author of the paper “Medicaid and Household Savings Behavior: New Evidence From Tax Refunds,” published in the Journal of Financial Economics.
The researchers show that financially burdened families’ savings get a shot in the arm with access to Medicaid.
Reseachers found that a family with little income, too many bills and no health insurance has little incentive or ability to save money. But put that family on Medicaid, the government’s health-care program for low-income people, and researchers found their calculation changes — they start to save. Read more about the findings online.