THE IMPACT OF HEALTH INSURANCE EXPANSIONS ON OTHER SOCIAL SAFETY NET PROGRAMS ‡ The Impact of Medicaid on Labor Market Activity and Program Participation: Evidence from the Oregon Health Insurance Experiment †

Most analyses of the impact of expanding Medicaid focus on the direct costs of the pro-gram from increased health expenditures and the direct benefits from improved health and reduced exposure to medical expenditure risk. In this paper, we consider possible additional impacts of Medicaid on enrollees ’ labor market activity and take-up of government benefits such as disability insurance and welfare. As states face choices about expanding their Medicaid programs, these indirect effects could create important additional costs and benefits. A priori, however, the sign, let alone the magnitude, o