Credit with Health Insurance: Evidence from the Philippines

• Is there any evidence of adverse selection in the insurance market in developing countries?
• Does access to health insurance increase risk-taking behavior?
• Does access to health insurance improve the health status of beneficiaries?
• Does formal insurance crowd-out informal insurance arrangements?

Partner organizations

The Philipine Health Insurance Corporation (PhilHealth) is the Philipine's national health insurance program.

Green Bank, Inc. is a large private rural bank with operations predominantly in Mindanao and the Visayas regions of the Philippines. Through a microfinance unit established in 1999, Green Bank lends capital to poor rural and semi-urban micro-entrepreneurs. Green Bank participates in the Kalusugan Sigurado at Abot-kaya sa PhilHealth Insurance (KaSAPI) initiative, where PhilHealth partners with local microfinance institutions to extend access to its health insurance scheme.

Product

This health insurance scheme has a premium of 300 Philippine pesos (about USD $6) per quarter. Its benefits include

• Hospitalization: 45 days of subsidized hospital room and board benefits per calendar year
• Subsidized hospital and doctor services
• Maternity care: coverage for pre-natal care, delivery, room and board, drugs and medicine, operating room services, care of newborn, postpartum care, family planning, and other necessary medical care
• Other benefits (with some restrictions): newborn care, most eye surgeries, organ transplant, SARS treatment, TB DOTS outpatient coverage, dialysis, and emergency cases.

Evaluation design

Experimental

Data Sources

• Household surveys
• Observation
• Administrative data

Project website(s)