Amy Finkelstein, Neale Mahoney, and Matthew Notowidigdo
The 2010 Affordable Care Act greatly increased health insurance rates for low-income Americans. When provided to the previously uninsured, health insurance yields better health, lower out-of-pocket spending, and reduced medical debt. Beyond those it insures, subsidized health insurance also substantially benefits healthcare providers who typically "foot the bill" for most of the uninsureds' care. According to the researchers, since low-income adults have access to a great amount of uncompensated care for which they pay little, they are less willing to pay the higher cost of acquiring an insurer's health plan, indicating why take-up of heavily subsidized insurance programs is so low.