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Did the Healthcard Program ensure Access to Medical Care for the Poor during Indonesia's Economic Crisis?

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Author Info
Menno Pradhan () (Vrije Universiteit Amsterdam, and World Bank, Jakarta)
Fadia Saadah (World Bank, Jakarta)
Robert Sparrow () (Vrije Universiteit Amsterdam)

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Abstract

The Indonesian Healthcard program was implemented in response to the economic crisis, which hit Indonesia in 1998, in order to preserve access to health care services for the poor. The Healthcard provided the households with subsidised care at public health care providers, while the providers themselves received budgetary support to compensate for the extra demand. This papers looks at the impact of this program on outpatient care utilisation, and, in particular, endeavours to disentangle the direct effect of the allocation of Healthcards from the indirect effect of the transfer of funds to health care facilities. It finds that the program resulted in a net increase in utilisation for the poor beneficiaries. Por non-poor beneficiaries the program resulted in a substitution from private to public providers only. However, the largest effect of the program seems to have come from a general increase in the quality of public services resulting from the budgetary support they received through this program.

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Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 03-016/2.

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Date of creation: 19 Feb 2003
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Handle: RePEc:dgr:uvatin:20030016

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Related research
Keywords: health insurance; program evaluation; targeted price subsidies; Indonesia.;

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This paper has been announced in the following NEP Reports: References listed on IDEAS
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    Other versions:
  3. Currie, J. & Thomas, D., 1995. "Medical Care for Children, Public Insurance, Private Insurance, and Racial Differences in Utilization," Papers 95-08, RAND - Reprint Series.
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  5. H. Naci Mocan & Erdal Tekin & Jeffrey S. Zax, 2000. "The Demand for Medical Care in Urban China," NBER Working Papers 7673, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Gertler, Paul & Locay, Luis & Sanderson, Warren, 1987. "Are user fees regressive? : The welfare implications of health care financing proposals in Peru," Journal of Econometrics, Elsevier, vol. 36(1-2), pages 67-88. [Downloadable!] (restricted)
  7. Lanjouw, Peter & Pradhan, Menno & Saadah, Fadia & Sayed, Haneen & Sparrow, Robert, 2001. "Poverty, education, and health in Indonesia : who benefits from public spending?," Policy Research Working Paper Series 2739, The World Bank. [Downloadable!]
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  17. Rajeev H. Dehejia & Sadek Wahba, 1998. "Causal Effects in Non-Experimental Studies: Re-Evaluating the Evaluation of Training Programs," NBER Working Papers 6586, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  22. Emmanuel Skoufias & Asep Suryahadi, 2000. "Changes in Household Welfare, Poverty and Inequality During the Crisis," Bulletin of Indonesian Economic Studies, Taylor and Francis Journals, vol. 36(2), pages 97-114, August. [Downloadable!] (restricted)
  23. Paul J. Gertler & Luis Locay & Warren C. Sanderson, 1987. "Are User Fees Regressive? The Welfare Implications of Health Care Financing Proposals in Peru," NBER Working Papers 2299, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  24. Frankenberg, E. & Thomas, D. & Beegle, K., 1999. "The Real Costs of Indonesia's Economic Crisis: Preliminary Findings from the Indonesia Family Life Surveys," Papers 99-04, RAND - Labor and Population Program.
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  25. Jimenez, Emmanuel, 1995. "Human and physical infrastructure: Public investment and pricing policies in developing countries," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 3, chapter 43, pages 2773-2843 Elsevier. [Downloadable!] (restricted)
  26. Foster, James & Greer, Joel & Thorbecke, Erik, 1984. "A Class of Decomposable Poverty Measures," Econometrica, Econometric Society, vol. 52(3), pages 761-66, May. [Downloadable!] (restricted)
  27. Asep Suryahadi & Sudarno Sumarto & Lant Pritchett, 2003. "Evolution of Poverty During the Crisis in Indonesia," Asian Economic Journal, East Asian Economic Association, vol. 17(3), pages 221-241, 09. [Downloadable!] (restricted)
  28. Guido W. Imbens, 2003. "Nonparametric Estimation of Average Treatment Effects under Exogeneity: A Review," NBER Technical Working Papers 0294, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Somanathan, Aparnaa, 2008. "The impact of price subsidies on child health care use : evaluation of the Indonesian healthcard," Policy Research Working Paper Series 4622, The World Bank. [Downloadable!]
  2. Ari A. Perdana & John Maxwell, 2004. "Poverty Targeting in Indonesia - Programs, Problems and Lessons Learned," Development Economics Working Papers 68, East Asian Bureau of Economic Research. [Downloadable!]
    Other versions:
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