State Health Insurance and Out-of-Pocket Health Expenditures in Andhra Pradesh, India

55 Pages Posted: 10 Jul 2012

See all articles by Victoria Fan

Victoria Fan

Center for Global Development

Ajay S. Mahal

Harvard University - T.H. Chan School of Public Health

Anup Karan

University of Oxford

Date Written: June 15, 2012

Abstract

In 2007, the state of Andhra Pradesh in southern India began rolling out the Aarogyasri health insurance to reduce catastrophic health expenditures in households “below the poverty line.” We exploit variation in program roll-out over time and districts to evaluate the impacts of the scheme using difference-in-differences. Our results suggest that, within the first year of implementation, Phase I of Aarogyasri significantly reduced out-of-pocket inpatient expenditures and, to a lesser extent, outpatient expenditures. These results are robust to checks using quantile regression and matching methods. No clear effects on catastrophic health expenditures or medical impoverishment are seen. Aarogyasri is not benefiting scheduled caste and scheduled tribe households as much as the rest of the population.

Keywords: health insurance, health expenditure, tertiary care, poverty, India

JEL Classification: I18, I38, G22

Suggested Citation

Fan, Victoria and Mahal, Ajay S. and Karan, Anup, State Health Insurance and Out-of-Pocket Health Expenditures in Andhra Pradesh, India (June 15, 2012). Center for Global Development Working Paper No. 298, Available at SSRN: https://ssrn.com/abstract=2102772 or http://dx.doi.org/10.2139/ssrn.2102772

Victoria Fan (Contact Author)

Center for Global Development ( email )

2055 L St. NW
5th floor
Washington, DC 20036
United States

Ajay S. Mahal

Harvard University - T.H. Chan School of Public Health ( email )

677 Huntington Avenue
Boston, MA MA 02115
United States

Anup Karan

University of Oxford ( email )

Mansfield Road
Oxford, Oxfordshire OX1 4AU
United Kingdom

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