Has health insurance provision affected young adults' living arrangements?

health insurance
Credit: CC0 Public Domain

Since September 2010, the Affordable Care Act (ACA) has allowed U.S. parents to include their children on their private health insurance plans until the age of 26 years. A study published in Contemporary Economic Policy found that this provision is linked with a higher likelihood that young adults live with their parents.

The study examined data from the Survey of Income and Program Participation, a nationally-representative household survey that includes extensive information on household composition, economic outcomes, health insurance, demographics, and participation in government programs. The ACA provision was associated with a 7% to 18% increased likelihood that young adults live with a parent, depending on the data set and specification.

The dependent care provision was intended to address the high rate of un-insurance among young adults. Studies show that the provision so far has been successful, but it may have inadvertently reduced young adults' flexibility regarding geographic location since living near a parent typically will be needed to stay in the parent's provider network and take advantage of a parent's .

"Our findings provide new evidence that the ACA dependent care provision encourages young adults to live with their parents, since doing so allows them to obtain insurance at little or no cost. It will be interesting to see whether this shift affects other outcomes, such as and educational decisions, particularly since the pandemic seems to be accelerating the trend of moving in with their parents," said corresponding author Pinka Chatterji, Ph.D., of the University at Albany, SUNY.

More information: Pinka Chatterji et al, Health insurance and the boomerang generation: Did the 2010 ACA dependent care provision affect geographic mobility and living arrangements among young adults?, Contemporary Economic Policy (2021). DOI: 10.1111/coep.12551

Provided by Wiley
Citation: Has health insurance provision affected young adults' living arrangements? (2021, September 22) retrieved 5 June 2023 from https://medicalxpress.com/news/2021-09-health-provision-affected-young-adults.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.

Explore further

Uninsured rate among young adults has plummeted in the last decade, report finds


Feedback to editors