Study Shows Additional Income Prevents Low-Income Americans from Visiting the Emergency Room

In a groundbreaking study published in the Journal of the American Medical Association on July 22, 2024, researchers found that providing cash to low-income individuals could have a significant impact on their health outcomes. The study followed nearly 2,900 low-income people in the Boston area who applied for a lottery, with almost 1,750 of them receiving up to $400 per month from November 2020 through August 2021.

The results of the study were striking. Those who received the monthly payments had 27% fewer visits to the emergency room compared to those who did not receive the cash. This finding challenges the common narrative that giving money to poor individuals would lead to irresponsible spending on drugs and alcohol. Dr. Sumit Agarwal, a physician at Brigham and Women’s Hospital in Boston and co-author of the study, emphasized that the results show that providing financial support can have a positive impact on health outcomes.

The study also revealed that individuals who received the cash used the emergency room less for medical issues related to behavioral health and substance use. There were no significant differences in regular doctor visits or prescriptions between the two groups, but those with the additional income utilized more outpatient specialty care. The researchers attributed this improvement in health outcomes to the reduced financial strain and increased economic resilience that came with the cash payments.

The lottery program was initially created to alleviate the cost of living for residents of Chelsea, a city near Boston with a high population of low-income immigrant residents. Tom Ambrosino, the then-city manager, explained that the program aimed to provide a more dignified way of supporting people in need. While he expected positive effects from the program, he was pleasantly surprised by the significant health benefits that emerged.

The study’s findings have important implications for public health policy. Previous research on income support has shown modest health effects, but this study stands out for its use of administrative health data and longer timeframe, providing a more comprehensive understanding of the impact of cash assistance on health outcomes. Sara Rosenbaum, a public health expert at George Washington University, noted that this study is one of the first to demonstrate the link between increased income and reduced healthcare costs over time.

Overall, the study highlights the potential of cash assistance programs to improve health outcomes for low-income individuals. By addressing financial instability and reducing stress levels, these programs can have a positive impact on overall health and well-being. The findings underscore the importance of considering innovative approaches to addressing health disparities and improving access to care for vulnerable populations.