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Health Insurance and Health Status: Exploring the Causal Effect from a Policy Intervention

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  • Jay Pan
  • Xiaoyan Lei
  • Gordon G. Liu

Abstract

Whether health insurance matters for health has long been a central issue for debate when assessing the full value of health insurance coverage in both developed and developing countries. In 2007, the government‐led Urban Resident Basic Medical Insurance (URBMI) program was piloted in China, followed by a nationwide implementation in 2009. Different premium subsidies by government across cities and groups provide a unique opportunity to employ the instrumental variables estimation approach to identify the causal effects of health insurance on health. Using a national panel survey of the URBMI, we find that URBMI beneficiaries experience statistically better health than the uninsured. Furthermore, the insurance health benefit appears to be stronger for groups with disadvantaged education and income than for their counterparts. In addition, the insured receive more and better inpatient care, without paying more for services. Copyright © 2015 John Wiley & Sons, Ltd.

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  • Jay Pan & Xiaoyan Lei & Gordon G. Liu, 2016. "Health Insurance and Health Status: Exploring the Causal Effect from a Policy Intervention," Health Economics, John Wiley & Sons, Ltd., vol. 25(11), pages 1389-1402, November.
    • Handle: RePEc:wly:hlthec:v:25:y:2016:i:11:p:1389-1402
    DOI: 10.1002/hec.3225
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    9. Wanyue Dong & Jianmin Gao & Zhongliang Zhou & Ruhai Bai & Yue Wu & Min Su & Chi Shen & Xin Lan & Xiao Wang, 2018. "Effects of China’s urban basic health insurance on preventive care service utilization and health behaviors: Evidence from the China Health and Nutrition Survey," PLOS ONE, Public Library of Science, vol. 13(12), pages 1-14, December.
    10. Ling Li & Hongqiao Fu, 2017. "China's health care system reform: Progress and prospects," International Journal of Health Planning and Management, Wiley Blackwell, vol. 32(3), pages 240-253, July.
    11. Wei Si, 2021. "Public health insurance and the labor market: Evidence from China's Urban Resident Basic Medical Insurance," Health Economics, John Wiley & Sons, Ltd., vol. 30(2), pages 403-431, February.
    12. Claire E. Boone & Pablo A. Celhay & Paul Gertler & Tadeja Gracner, 2023. "Encouraging Preventative Care to Manage Chronic Disease at Scale," NBER Working Papers 31643, National Bureau of Economic Research, Inc.
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    14. Chen, Hua & Ding, Yugang & Tang, Lin & Wang, Lizhen, 2022. "Impact of urban–rural medical insurance integration on consumption: Evidence from rural China," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 837-851.
    15. Nshakira-Rukundo, Emmanuel & Mussa, Essa Chanie & Gerber, Nicolas & von Braun, Joachim, 2020. "Impact of voluntary community-based health insurance on child stunting: Evidence from rural Uganda," Social Science & Medicine, Elsevier, vol. 245(C).
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