Will auto-IRA programs affect Medicaid enrollment?

Abstract

In recent years, 16 states have launched or are preparing to launch auto-IRA programs that require employers without a retirement plan to auto-enroll their workers in an IRA. Although studies have begun to document outcomes in the nascent auto-IRAs, less attention has been paid to their interaction with other safety net programs, particularly Medicaid. This project uses a simulation model to explore whether low- and middle-income households will delay or forego Medicaid recipiency because of their new auto-IRA savings. Specifically, it estimates how many Medicaid-free years future households could buy with their auto-IRA balances if a national program had launched in 2019.