EFFECTS OF HEALTH INSURANCE ELIGIBILITY EXPANSION ON HOUSEHOLD CONSUMPTION IN VIETNAM

Abstract

This 2005 pre/post difference provides a natural experiment opportunity that, survey data can be taken advantage of by the quasi-experimental difference-in-differences (DID) method. When combined with propensity score matching (PSM-DID), it is also possible to evaluatepreviously unseen impacts of the greatest NHI reform ever seen in Vietnam. Regression tests were conducted to look for effects on household consumption using four indicators, total household consumption, per capita consumption, medical consumption and non-medical consumption. The results showed that the 2005 reform hada strong and positive impact on total household consumption, per capita consumption and non-medical expendituresin the treatment group, but no effect was found on household medical consumption. In addition, ethnic minority households, households in rural areas and poor households were likely to decrease spending on goods. Households with spouse(s) in higher education, higher occupational skill levelsand more wealthy households were more likely to increase their consumption.