Research Update: Medicaid pulls Americans out of poverty

Various studies continue to show that Medicaid is one of the most effective strategies for fighting poverty. Some of the findings include:

  • Medicaid had a larger effect on child poverty than all non-health means tested benefits combined. It is estimated to reduce child poverty by 5.3 percentage points.
  • Medicaid kept at least 2.6 million individuals out of poverty in 2010, making it the third largest anti-poverty strategy in the country behind the EITC and SNAP.
  • Health insurance benefits are important to families who receive them. Medicaid reduced poverty among its beneficiaries by 17.1 percentage points. This is higher than other types of insurance: Employer Sponsored Insurance reduced poverty by 5 percentage points for those it covered and premium subsidies reduced poverty by 6.6 percentage points for those it covered.

To read more about the studies and how Medicaid helps reduce poverty and increase productivity for American families, click here.

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