Effects of Medicaid Coverage on Work Outcomes Among Low-Income Women

A recent study published in Health Services Research provides new insights into the effects of the Family First Coronavirus Response Act (FFCRA) on work outcomes of low-income women who benefited from expanded Medicaid coverage postpartum. By analyzing data from the 2016-2022 American Community Survey, researchers found that the FFCRA increased postpartum Medicaid coverage by 2.8 percentage points, or 9.3% relative to the 2019 Medicaid coverage rate. However, the effects on work outcomes were small and not significant, with minimal declines in labor force participation, employment, and full-time employment.

Key Takeaways:

  • The Family First Coronavirus Response Act (FFCRA) expanded Medicaid eligibility for pregnant and postpartum women, increasing postpartum Medicaid coverage by 2.8 percentage points.
  • The study analyzed data from the 2016-2022 American Community Survey, which included 205,104 women aged 19-49 years who reported giving birth within the past 12 months.
  • The FFCRA effects on work outcomes were small and not significant, with an average effect of 0.10 percentage points for labor force participation, 0.7 percentage points for employment, and 0.04 hours for weekly work hours.
  • The increase in Medicaid coverage was concentrated among states with a larger difference between pregnancy and non-pregnancy eligibility.
  • There is no evidence of declines in work outcomes following the increase in Medicaid coverage beyond 60 days postpartum.

Statistics:

  • 2.8 percentage points increase in postpartum Medicaid coverage due to the FFCRA (95% CI: 0.7-4.8).
  • 9.3% relative increase in Medicaid coverage rate compared to 2019.
  • Average effect of 0.10 percentage points for labor force participation, 0.7 percentage points for employment, 0.04 hours for weekly work hours, and 0.2 percentage points for full-time employment.
  • No significant declines in work outcomes following the increase in Medicaid coverage beyond 60 days postpartum.

Sources:

  • Effects of Medicaid Coverage on Work: Evidence From Extending Postpartum Medicaid Coverage. Health Services Research, 2025. (Wiley-Blackwell - www.wiley.com/)
  • NewsRx. Recent Findings from University of Alabama at Birmingham Provide New Insights into Coronavirus (Effects of Medicaid Coverage on Work: Evidence From Extending Postpartum Medicaid Coverage). Managed Care Weekly Digest. October 20, 2025; p 101.