The Impact of Subsidized Health Insurance on the Poor in Colombia: Evaluating the Case of Medellín through Endogenous Switching Models and Propensity Score Matching for Medical Care Utilization

Abstract

This paper uses count and binary data models with endogenous switching, and propensity score matching to evaluate the effect of the subsidized health care program in Medellin (Colombia). The subsidized program, which primarily covers poor people, is found to have a negative association with the use of preventive medical care, but no significant impact on hospitalization. Also, parametric specifications indicate that there is neither selection bias nor moral hazard.

Keywords: Subsidized Health Insurance Program Evaluation, Endogenous Switching Regression, Propensity Score Matching

JEL Classification: I10, I18, C01, C13, C14, C21