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Moral hazard effects of supplemental private health insurance in Korea

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  • Ko, Hansoo

Abstract

Supplemental private health insurance has gained popularity despite having a mandatory social health insurance program in Korea. Private insurance supplements the social insurance program by covering co-pays and services not covered by social insurance. Using longitudinal microdata from the 2008–2014 Korea Health Panel, this study finds evidence of favorable selection into supplemental private insurance. Results show that supplemental private insurance increases outpatient and hospitalization utilization. Private health insurance generates welfare benefits especially among the elderly and low-income individuals, though the coverage rate for these groups is low.

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  • Ko, Hansoo, 2020. "Moral hazard effects of supplemental private health insurance in Korea," Social Science & Medicine, Elsevier, vol. 265(C).
    • Handle: RePEc:eee:socmed:v:265:y:2020:i:c:s027795362030544x
    DOI: 10.1016/j.socscimed.2020.113325
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    Cited by:

    1. Li, Yao & Li, Lei & Liu, Junxia, 2023. "The efficient moral hazard effect of health insurance: Evidence from the consolidation of urban and rural resident health insurance in China," Social Science & Medicine, Elsevier, vol. 324(C).
    2. 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.
    3. Ignacio Ibarra López & Juan Antonio Tapia Cortés, 2022. "El uso de productos financieros en la demanda de seguros en México," Remef - Revista Mexicana de Economía y Finanzas Nueva Época REMEF (The Mexican Journal of Economics and Finance), Instituto Mexicano de Ejecutivos de Finanzas, IMEF, vol. 17(3), pages 1-26, Julio - S.
    4. Kim, Sujin & Kwon, Soonman, 2023. "Has South Korea achieved the goals of national health insurance? Trends in financial protection of households between 2011 and 2018," Social Science & Medicine, Elsevier, vol. 326(C).
    5. Watanabe,Yuichi, 2023. "Longitudinal analysis of income-related inequalities in health care under universal coverage in Korea," IDE Discussion Papers 909, Institute of Developing Economies, Japan External Trade Organization(JETRO).

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