Introduction
Lower-income Americans are suffering from declines in income, health, and longevity
over time. Income and employment policies have been proposed as a potential non-medical
solution to this problem.
Methods
An interrupted time series analysis of state-level incremental supplements to the
Earned Income Tax Credit (EITC) program was performed using data from 1993 to 2010
Behavioral Risk Factor Surveillance System surveys and state-level life expectancy.
The cost effectiveness of state EITC supplements was estimated using a microsimulation
model, which was run in 2015.
Results
Supplemental EITC programs increased health-related quality of life and longevity
among the poor. The program costs about $7,786/quality-adjusted life-year gained (95%
CI=$4,100, $13,400) for the average recipient. This ratio increases with larger family
sizes, costing roughly $14,261 (95% CI=$8,735, $19,716) for a family of three.
Conclusions
State supplements to EITC appear to be highly cost effective, but randomized trials
are needed to confirm these findings.
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Article info
Publication history
Published online: September 07, 2016
Identification
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© 2016 American Journal of Preventive Medicine. Published by Elsevier Inc. All rights reserved.
