Health-care reform and bankruptcy: evidence from Massachusetts

Previous research claims that medical expenses are a leading cause of bankruptcy in the United States. Using data from the 50 states and the District of Columbia from 2001 to 2010, this article examines the relationship between Massachusetts' 2006 health-care reform and bankruptcy filings. After including state- and year-fixed effects and other covariates, the results indicate that, contrary to expectations, bankruptcy filings increased following Massachusetts' move towards universal medical insurance coverage.