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Effect of private health insurance on health care utilization in a universal public insurance system: A case of South Korea

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  • Jeon, Boyoung
  • Kwon, Soonman

Abstract

This study examined the effect of private health insurance (PHI) on health care utilization in South Korea using a nationally representative sample of 9512 adults participating in Korea Health Panel Survey (KHPS). We compared the health care utilization and subsequent expenditure according to whether or not and how many PHIs are purchased, controlling for the endogeneity of insurance purchase by propensity score matching method and Heckman-type treatment effect model. The results of this study show that the probability of any health care utilization, both outpatient care and inpatient care, is higher for the people who have PHI. For those who utilize health care, PHI has a positive impact on outpatient expenditure, but not on the number of outpatient visits. The effect of PHI on the number of inpatient days and expenditure is not statistically significant among the users of inpatient care. These results imply a need for policy options to mitigate the moral hazard effect of PHI in the outpatient care sector.

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  • Jeon, Boyoung & Kwon, Soonman, 2013. "Effect of private health insurance on health care utilization in a universal public insurance system: A case of South Korea," Health Policy, Elsevier, vol. 113(1), pages 69-76.
    • Handle: RePEc:eee:hepoli:v:113:y:2013:i:1:p:69-76
    DOI: 10.1016/j.healthpol.2013.05.007
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    2. Kwame Adjei-Mantey & Charles Yuji Horioka, 2023. "Determinants of health insurance enrollment and health expenditure in Ghana: an empirical analysis," Review of Economics of the Household, Springer, vol. 21(4), pages 1269-1288, December.
    3. Hye Yin Park & Yun-Chul Hong & Ichiro Kawachi & Juhwan Oh, 2018. "Gaps in universal health coverage in South Korea: Association with depression onset in a community cohort," PLOS ONE, Public Library of Science, vol. 13(6), pages 1-11, June.
    4. World Bank, 2015. "Bulgaria Health Financing," World Bank Publications - Reports 22964, The World Bank Group.
    5. Jang, Sung-In & Yi, Sang-Wook & Sull, Jae-Woong & Park, Eun-Cheol & Kim, Jae-Hyun & Ohrr, Heechoul, 2015. "Association between all-cause mortality and insurance status transition among the elderly population in a rural area in Korea: Kangwha Cohort Study," Health Policy, Elsevier, vol. 119(5), pages 680-687.
    6. Ko, Hansoo, 2020. "Moral hazard effects of supplemental private health insurance in Korea," Social Science & Medicine, Elsevier, vol. 265(C).
    7. Seung Ju Kim & Kyu-Tae Han & Suk-Yong Jang & Ki-Bong Yoo & Sun Jung Kim, 2018. "The Association between Migraine and Types of Sleep Disorder," IJERPH, MDPI, vol. 15(12), pages 1-12, November.
    8. Lan Nguyen & Andrew C. Worthington, 2023. "Moral hazard in Australian private health insurance: the case of dental care services and extras cover," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 48(1), pages 157-176, January.
    9. Lee, Hye Myung & Ko, Hansoo, 2022. "The impact of benefits coverage expansion of social health insurance: Evidence from Korea," Health Policy, Elsevier, vol. 126(9), pages 925-932.
    10. Jae-Hyun Kim & Kwang-Soo Lee & Ki-Bong Yoo & Eun-Cheol Park, 2015. "The Differences in Health Care Utilization between Medical Aid and Health Insurance: A Longitudinal Study Using Propensity Score Matching," PLOS ONE, Public Library of Science, vol. 10(3), pages 1-13, March.
    11. Jiang, Yawen & Ni, Weiyi, 2020. "Impact of supplementary private health insurance on hospitalization and physical examination in China," China Economic Review, Elsevier, vol. 63(C).
    12. Daehwan Kim & Dong-hwa Lee, 2023. "Does private health insurance prevent the onset of critical illness and disability in a universal public insurance system?," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 48(1), pages 177-193, January.
    13. Chang Hoon You & Ji Heon Choi & Sungwook Kang & Eun-Hwan Oh & Young Dae Kwon, 2018. "Association between supplementary private health insurance and visits to physician offices versus hospital outpatient departments among adults with diabetes in the universal public insurance system," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-11, April.
    14. Han, Kyu-Tae & Kim, Jeeyun & Nam, Chung Mo & Moon, Ki Tae & Lee, Sang Gyu & Kim, Seung Ju & Ju, Yeong Jun & Kwon, Jeoung A & Kim, Sun Jung & Kim, Woorim & Park, Eun-Cheol, 2016. "Association between reduction in copayment and gastric cancer patient concentration to the capital area in South Korea: NHI cohort 2003–2013," Health Policy, Elsevier, vol. 120(6), pages 580-589.
    15. Jinha An & Sukil Kim, 2020. "Medical cost trends under national health insurance benefit extension in Republic of Korea," International Journal of Health Planning and Management, Wiley Blackwell, vol. 35(6), pages 1351-1370, November.

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