Health insurance, a friend in need? Evidence from financial and health diaries in Kenya

Health insurance can protect consumption from health shocks, but it can also crowd out informal transfers. This paper examines whether health insurance improves consumption smoothing in the face of health shocks, and to what extent results depend on households’ access to informal transfers as a risk...

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Autores principales: Geng, Xin, Ide, Vera, Janssens, Wendy, Kramer, Berber, van der List, Marijn
Formato: Artículo preliminar
Lenguaje:Inglés
Publicado: International Food Policy Research Institute 2017
Materias:
Acceso en línea:https://hdl.handle.net/10568/147735
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author Geng, Xin
Ide, Vera
Janssens, Wendy
Kramer, Berber
van der List, Marijn
author_browse Geng, Xin
Ide, Vera
Janssens, Wendy
Kramer, Berber
van der List, Marijn
author_facet Geng, Xin
Ide, Vera
Janssens, Wendy
Kramer, Berber
van der List, Marijn
author_sort Geng, Xin
collection Repository of Agricultural Research Outputs (CGSpace)
description Health insurance can protect consumption from health shocks, but it can also crowd out informal transfers. This paper examines whether health insurance improves consumption smoothing in the face of health shocks, and to what extent results depend on households’ access to informal transfers as a risk coping strategy. Using high-frequency panel data on health and finances collected in rural Kenya, we show that mobile money users have stronger access to informal transfers than nonusers. We further find that health shocks induce nonusers of mobile money to lower their nonhealth expenditures by approximately 25 percent in weeks when they are uninsured. These same households are able to smooth consumption in weeks with insurance coverage, due to lower out-of-pocket health expenditures. In contrast, mobile money users are able to smooth consumption when experiencing health shocks even in the absence of health insurance, due to an inflow of informal transfers. For this group, health insurance improves healthcare utilization and does not crowd out the inflow informal transfers during weeks with health shocks. These findings have implications for the design of health insurance and mobile health financing products.
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spelling CGSpace1477352025-11-06T06:37:53Z Health insurance, a friend in need? Evidence from financial and health diaries in Kenya Geng, Xin Ide, Vera Janssens, Wendy Kramer, Berber van der List, Marijn health insurance remittances Health insurance can protect consumption from health shocks, but it can also crowd out informal transfers. This paper examines whether health insurance improves consumption smoothing in the face of health shocks, and to what extent results depend on households’ access to informal transfers as a risk coping strategy. Using high-frequency panel data on health and finances collected in rural Kenya, we show that mobile money users have stronger access to informal transfers than nonusers. We further find that health shocks induce nonusers of mobile money to lower their nonhealth expenditures by approximately 25 percent in weeks when they are uninsured. These same households are able to smooth consumption in weeks with insurance coverage, due to lower out-of-pocket health expenditures. In contrast, mobile money users are able to smooth consumption when experiencing health shocks even in the absence of health insurance, due to an inflow of informal transfers. For this group, health insurance improves healthcare utilization and does not crowd out the inflow informal transfers during weeks with health shocks. These findings have implications for the design of health insurance and mobile health financing products. 2017 2024-06-21T09:23:15Z 2024-06-21T09:23:15Z Working Paper https://hdl.handle.net/10568/147735 en https://hdl.handle.net/10568/156197 https://hdl.handle.net/10568/147965 https://www.pharmaccess.org/wp-content/uploads/2017/05/2017_3.-What-diaries-can-tell-us-about-insurance-renewal-decisions.pdf application/pdf International Food Policy Research Institute Geng, Xin; Ide, Vera; Janssens, Wendy; Kramer, Berber; and van der List, Marijn. 2017. Health insurance, a friend in need? Evidence from financial and health diaries in Kenya. IFPRI Discussion Paper 1664. Washington, DC https://hdl.handle.net/10568/147735
spellingShingle health insurance
remittances
Geng, Xin
Ide, Vera
Janssens, Wendy
Kramer, Berber
van der List, Marijn
Health insurance, a friend in need? Evidence from financial and health diaries in Kenya
title Health insurance, a friend in need? Evidence from financial and health diaries in Kenya
title_full Health insurance, a friend in need? Evidence from financial and health diaries in Kenya
title_fullStr Health insurance, a friend in need? Evidence from financial and health diaries in Kenya
title_full_unstemmed Health insurance, a friend in need? Evidence from financial and health diaries in Kenya
title_short Health insurance, a friend in need? Evidence from financial and health diaries in Kenya
title_sort health insurance a friend in need evidence from financial and health diaries in kenya
topic health insurance
remittances
url https://hdl.handle.net/10568/147735
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AT janssenswendy healthinsuranceafriendinneedevidencefromfinancialandhealthdiariesinkenya
AT kramerberber healthinsuranceafriendinneedevidencefromfinancialandhealthdiariesinkenya
AT vanderlistmarijn healthinsuranceafriendinneedevidencefromfinancialandhealthdiariesinkenya