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Does non-profit health insurance reduce financial burden? Evidence from the Vietnam living standards survey panel

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Author Info

  • Ardeshir Sepehri

    (Department of Economics, University of Manitoba, Canada)

  • Sisira Sarma

    (Elisabeth Bruyere Research Institute, University of Ottawa, Canada)

  • Wayne Simpson

    (Department of Economics, University of Manitoba, Canada)

Abstract

Many low-income countries are implementing non-profit medical insurance to increase access to health services, especially among low-income households, and to raise additional revenue for financing public health services. This paper estimates the effect of insurance on out-of-pocket health expenditures using the Vietnam Living Standards Surveys for 1993 and 1998 and appropriate models for panel data. Our findings suggest that health insurance reduces health expenditure when unobserved heterogeneity is accounted for. Failure to capture unobserved heterogeneity produces contrary results that are consistent with previous cross-sectional studies in the literature. Health insurance is found to reduce out-of-pocket expenditure between 16 and 18% and the reduction in expenditure is more pronounced for individuals with lower incomes. At mean income, the effect of health insurance is to reduce health expenditures between 28 and 35%. Copyright © 2005 John Wiley & Sons, Ltd.

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File URL: http://hdl.handle.net/10.1002/hec.1080
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Bibliographic Info

Article provided by John Wiley & Sons, Ltd. in its journal Health Economics.

Volume (Year): 15 (2006)
Issue (Month): 6 ()
Pages: 603-616

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Handle: RePEc:wly:hlthec:v:15:y:2006:i:6:p:603-616

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Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749

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References

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  1. Matthew Jowett & Anil Deolalikar & Peter Martinsson, 2004. "Health insurance and treatment seeking behaviour: evidence from a low-income country," Health Economics, John Wiley & Sons, Ltd., vol. 13(9), pages 845-857.
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  8. Jowett, M. & Contoyannis, P. & Vinh, N. D., 2003. "The impact of public voluntary health insurance on private health expenditures in Vietnam," Social Science & Medicine, Elsevier, vol. 56(2), pages 333-342, January.
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Cited by:
  1. Cuong Viet Nguyen, 2012. "The Impact Of Voluntary Health Insurance On Health Care Utilization And Out‐Of‐Pocket Payments: New Evidence For Vietnam," Health Economics, John Wiley & Sons, Ltd., vol. 21(8), pages 946-966, 08.
  2. Nguyen Viet Cuong, 2012. "The Impact of Health Insurance for Children:Evidence from Vietnam," Working Papers 33, Development and Policies Research Center (DEPOCEN), Vietnam.
  3. Rama Joglekar, 2008. "Can Insurance Reduce Catastrophic Out-of-Pocket Health Expenditure?," Labor Economics Working Papers 22367, East Asian Bureau of Economic Research.
  4. Burcay Erus & Nazli Aktakke, 2012. "Impact of healthcare reforms on out-of-pocket health expenditures in Turkey for public insurees," The European Journal of Health Economics, Springer, vol. 13(3), pages 337-346, June.
  5. Acharya, Arnab & Vellakkal, Sukumar & Taylor Fiona & Masset Edoardo & Satija, Ambika & Burke, Margaret & Ebrahim, Shah, 2013. "The impact of health insurance schemes for the informal sector in low- and middle-income countries : a systematic review," Policy Research Working Paper Series 6324, The World Bank.
  6. Wagstaff, Adam & Lindelow, Magnus, 2008. "Can insurance increase financial risk?: The curious case of health insurance in China," Journal of Health Economics, Elsevier, vol. 27(4), pages 990-1005, July.
  7. Pablo Gottret & George J. Schieber & Hugh R. Waters, 2008. "Good Practices in Health Financing : Lessons from Reforms in Low and Middle-Income Countries," World Bank Publications, The World Bank, number 6442, October.
  8. Menon, Nidhiya & van der Meulen Rodgers, Yana & Nguyen, Huong, 2014. "Women’s Land Rights and Children’s Human Capital in Vietnam," World Development, Elsevier, vol. 54(C), pages 18-31.
  9. M.H. Suryanarayana, 2008. "Morbidity Profiles of Kerala and All-India - An Economic Perspective," Development Economics Working Papers 22350, East Asian Bureau of Economic Research.
  10. Samuel S. Lieberman & Adam Wagstaff, 2009. "Health Financing and Delivery in Vietnam : Looking Forward," World Bank Publications, The World Bank, number 2594, October.
  11. Wagstaff, Adam & Lindelow, Magnus & Jun, Gao & Ling, Xu & Juncheng, Qian, 2009. "Extending health insurance to the rural population: An impact evaluation of China's new cooperative medical scheme," Journal of Health Economics, Elsevier, vol. 28(1), pages 1-19, January.
  12. Nguyen Viet Cuong, 2014. "Impact Evaluation of Health Insurance for Children: Evidence from a Developing Country," Working Papers 2014-180, Department of Research, Ipag Business School.
  13. Midori Matsushima & Hiroyuki Yamada, 2013. "Public Health Insurance in Vietnam towards Universal Coverage: Identifying the challenges, issues, and problems in its design and organizational practices," OSIPP Discussion Paper 13E003, Osaka School of International Public Policy, Osaka University.
  14. Galarrága, O & Sosa-Rubí, S. G & Salinas, A & Sesma, S, 2008. "The Impact of Universal Health Insurance on Catastrophic and Out-of-Pocket Health Expenditures in Mexico: a Model with an Endogoenous Treatment Variable," Health, Econometrics and Data Group (HEDG) Working Papers 08/12, HEDG, c/o Department of Economics, University of York.
  15. Nguyen Viet, Cuong, 2010. "Public health services and health care utilization in Viet Nam," MPRA Paper 33610, University Library of Munich, Germany.
  16. Chaudhuri, Anoshua & Roy, Kakoli, 2008. "Changes in out-of-pocket payments for healthcare in Vietnam and its impact on equity in payments, 1992-2002," Health Policy, Elsevier, vol. 88(1), pages 38-48, October.
  17. Do, Thu Trang & Le, Hai Chau & Nguyen, Viet Cuong & Nguyen, Hong Thuy & Phung, Thanh Thu & Phung, Duc Tung, 2013. "Impact Assessment of Poverty Reduction Programs of Ho Chi Minh City in Vietnam," MPRA Paper 52876, University Library of Munich, Germany.
  18. Adam Wagstaff, 2010. "Estimating health insurance impacts under unobserved heterogeneity: the case of Vietnam's health care fund for the poor," Health Economics, John Wiley & Sons, Ltd., vol. 19(2), pages 189-208.
  19. Omar Galárraga & Sandra Sosa-Rubí & Aarón Salinas-Rodríguez & Sergio Sesma-Vázquez, 2010. "Health insurance for the poor: impact on catastrophic and out-of-pocket health expenditures in Mexico," The European Journal of Health Economics, Springer, vol. 11(5), pages 437-447, October.

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