Guaranteed annual income and health

 I am in favor of guaranteed annual income—or universal basic income, or similar proposals. They’re a form of social security in which a population group receives a regular sum of money, either from a government or from some other public institution, independent of any other income. The idea, in the words of the Stanford Basic Income Lab and Center for Guaranteed Income Research, is to “…facilitate individuals' opportunity, freedom, and resilience to build financial security.” In the United States, about 30 pilot programs have been established and evaluated.

A large body of research has shown that people tend to use the money for essentials, such as rent, transportation and food—also for medical care. In one pilot program, 2800 participants received cash benefits via debit card of up to $400 per month for 9 months. As reported in The Journal of the American Medical Association, researchers found that—compared to a control group—the cash benefits significantly reduced emergency room visits. That’s because people spent money on healthcare—including visits to subspecialists—to forestall such visits.

In another pilot program, 3000 participants in Illinois and Texas received $1,000 monthly for three years beginning in 2020—a 40 percent boost in their incomes. At a time when even Americans with insurance say they have trouble staying healthy because they struggle to afford care, the study results show that basic-income recipients increased their spending on health care services, including visits to hospitals and dentists. (Almost two in five insured Americans report delaying or skipping necessary treatment or medication because of high out-of-pocket costs for health care.)

Studies have not proven that the cash transfers have had a lasting impact on the physical health of the recipients (probably too late). Even so, recipients at least have more resources to seek help when they need it.

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