A previous version of this working paper was originally published as "Financial Consequences of Health Insurance: Evidence from the ACA's Dependent Coverage Mandate in December 2019." Supersedes Working Paper 18-03 – "Did the ACA’s Dependent Coverage Mandate Reduce Financial Distress for Young Adults?"

We examine the effects of both gaining and losing eligibility by exploiting the mandate’s implementation in 2010 and its automatic disenrollment mechanism at age 26. Our estimates show that increasing access to health insurance lowers young adults’ out-of-pocket medical expenditures and debt in third-party collections. However, the reductions in financial distress are transitory, as they diminish after an individual loses access to parental insurance when they age out of the mandate at age 26.