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 lead to a significant decrease in emergency department visits. The study, which focused on nearly 2,900 low-income individuals in Chelsea, revealed that those who received monthly payments of up to $400 experienced a 27% reduction in emergency room visits over a nine-month period compared to those who did not receive the cash assistance.
Dr. Sumit Agarwal, a co-author of the study and a physician at Brigham and Women’s Hospital in Boston, emphasized the importance of trusting low-income individuals with financial support. He dispelled the common misconception that cash assistance would be misused on drugs and alcohol, stating, “We can trust the poor with money.” This study provides empirical evidence that providing direct financial assistance can have a positive impact on health outcomes.
The correlation between poverty and poor health outcomes is well-documented, and this study sheds light on the potential benefits of increasing basic income in the United States. The researchers found that recipients of the cash assistance used the emergency room less for medical issues related to behavioral health and substance use, indicating an improvement in overall health and well-being.
One of the key findings of the study was that the financial stability provided by the cash assistance reduced stress levels among recipients, leading to fewer emergency room visits. While there were no significant differences in regular doctor visits or prescriptions between the two groups, individuals who received the additional income utilized more outpatient specialty care, suggesting a shift towards preventive healthcare measures.
Unlike previous studies on income support that yielded modest or inconclusive results, the Chelsea study utilized administrative health data and considered a longer time frame, providing a more comprehensive understanding of the impact of cash assistance on health outcomes. Sara Rosenbaum, a public health expert from George Washington University, noted that this research is among the first to demonstrate the long-term health benefits of increased income in reducing healthcare costs.
The lottery program in Chelsea, which initially aimed to alleviate financial burdens for low-income residents, unexpectedly revealed the direct impact of cash assistance on health outcomes. City manager Tom Ambrosino, who spearheaded the program, expressed surprise at the positive effects on health, stating, “It supports the proposition that universal basic income programs do work and they aren’t wasteful.” The program, which cost the city approximately $700,000 per month, demonstrated that providing direct financial support can lead to positive outcomes for individuals and communities.
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, direct financial support can lead to a decrease in emergency room visits and overall healthcare costs. This research underscores the importance of considering income support as a viable strategy for promoting health and well-being among vulnerable populations.
