Title: Health Care Expenditures, Financial Stability, and Participation in the Supplemental Nutrition Assistance Program (SNAP),
Abstract: This paper examines the association between household healthcare expenses and
participation in the Supplemental Nutrition Assistance Program (SNAP) when
moderated by factors associated with financial stability of households. Using a
large longitudinal panel encompassing eight years, this study finds that an
inter-temporal increase in out-of-pocket medical expenses increased the
likelihood of household SNAP participation in the current period. Financially
stable households with precautionary financial assets to cover at least 6
months worth of household expenses were significantly less likely to
participate in SNAP. The low income households who recently experienced an
increase in out of pocket medical expenses but had adequate precautionary
savings were less likely than similar households who did not have precautionary
savings to participate in SNAP. Implications for economists, policy makers, and
household finance professionals are discussed.