Health Care
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Noa Ronkin
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News
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Around the world, societies are aging at a rapid pace. The demographic transition and the challenges surrounding elderly care are defining issues of our time. Aging populations strain public finances and existing models of social support, affect economic growth, and change disease patterns and prevalence. Many countries, therefore, contemplate policy changes to their retirement, pensions, and health care systems. China, which faces a fast-growing trend of aging cohorts, is no exception.

To alleviate the pressure of elderly care on public finances, the Chinese government has been considering raising retirement ages and corresponding changes in social health insurance and pension policy. A new study now helps evaluate such retirement reforms and provides evidence to inform policy in China and elsewhere by probing the effects of retirement on health care utilization.


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The study’s co-authors, including Karen Eggleston, director of the Asia Health Policy Program at APARC, leverage administrative data from medical claims for over 80,000 insured adults in a megacity in eastern China to explore the effect of retirement on outpatient and inpatient care utilization. In this case, urban employee insurance beneficiaries receive a reduced patient cost-sharing rate upon retirement. By focusing on a relatively well-insured population with comprehensive administrative data on insurance plan design and overall resource use at retirement, the study provides new evidence about mechanisms such as the reduced out-of-pocket price of health care, the opportunity cost of time, and the interaction of these demand-side factors with supply-side incentives. Eggleston and her colleagues report on their findings in the journal Health Economics.

Our study reveals that increased utilization at retirement primarily comes in the form of outpatient services.

In this relatively well-insured population, annual health care utilization significantly increases primarily because of more intensive use of outpatient care at retirement. This increase in outpatient care stems from a decline in the patient cost-sharing rate, the reduced time constraints upon retirement, and the interaction of these factors with supply-side incentives such as prescribing antibiotics. There is no evidence of change in inpatient care at retirement.

The economics of medical expenditure growth and its interaction with population aging is of considerable policy importance for countries in all income groups. “Our findings may provide useful evidence as one consideration for policymakers in other cities in China and elsewhere looking to increase insurance benefits and control medical spending for burgeoning elderly populations.

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In China, Better Financial Coverage Increases Health Care Access and Utilization

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Why Insurance Alone May Not Improve Women's Access To Healthcare

A new study of the Rajasthan government's Bhamashah health insurance program for poor households has found that just providing health insurance cover doesn't reduce gender inequality in access to even subsidized health care.
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The study’s co-authors, including Karen Eggleston, find that health care expenditures among Chinese covered by relatively generous health insurance significantly increase at retirement, primarily due to an increase in the number of outpatient visits.

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Previous studies, mostly analyzing data from high-income economies, present mixed evidence on the relationship between retirement and healthcare utilization. This study leverages administrative data for over 80,000 urban Chinese workers to explore the effect of retirement on outpatient and inpatient care utilization using a fuzzy regression discontinuity design. The analyses of medical claims from a large city in China complement and extend the current literature by providing evidence of potential mechanisms underlying increased short-run utilization. In this relatively well-insured population, annual total healthcare expenditures significantly increase primarily because of more intensive use of outpatient care at retirement, especially at the right tail of the distribution of outpatient visits. This increase in outpatient care appears to stem from a decline in the patient cost-sharing rate and the reduced opportunity cost of time upon retirement, interacting with supplier-induced demand, not from any sudden impact on health. We do not find evidence of change in inpatient care at retirement. The results hold for both females and males and are robust to a number of sensitivity analyses.

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Journal Articles
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Health Economics
Authors
Qin Zhou
Karen Eggleston
Gordon G. Liu
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Introduction

Governments around the world suspended immunization outreach to control COVID-19 spread. Many have since resumed services with an emphasis on catch-up vaccinations. This paper evaluated immunization disruptions during India’s March-May 2020 lockdown and the extent to which subsequent catch-up efforts reversed them in Rajasthan, India.
 

Methods

In this retrospective observational study, we conducted phone surveys to collect immunization details for 2,144 children that turned one-year-old between January and October 2020. We used logistic regressions to compare differences in immunization timeliness and completed first-year immunization status among children that were due immunizations just before (unexposed), during (heavily exposed), and after (post-exposure) the lockdown.
 

Results

Relative to unexposed children, heavily exposed children were significantly less likely to be immunized at or before 9 months (OR 0.550; 95% CI 0.367–0.824; p = 0.004), but more likely to be immunized at 10–12 months (OR 1.761; 95% CI 1.196–2.591; p = 0.004). They were also less likely to have completed their key first-year immunizations (OR 0.624; 95% CI 0.478–0.816; p = 0.001) by the time of the survey. In contrast, post-exposure children showed no difference in timeliness or completed first-year immunizations relative to unexposed children, despite their younger age. First-year immunization coverage among heavily exposed children decreased by 6.9 pp to 10.4 pp (9.7% to 14.0%). Declines in immunization coverage were larger among children in households that were poorer, less educated, lower caste, and residing in COVID red zones, although subgroup comparisons were not statistically significant.
 

Conclusion

Disruptions to immunization services resulted in children missing immunization during the lockdown, but catch-up efforts after it was eased ensured many children were reached at later ages. Nevertheless, catch-up was incomplete and children due for their immunizations during the lockdown remained less likely to be fully immunized 4–5 months after it lifted, even as younger cohorts due for immunizations in June or later returned to pre-lockdown schedules.

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Journal Articles
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A retrospective observational study
Journal Publisher
Vaccine
Authors
Ambika Chopra
Camille Falézan
Mustufa Patel
Number
Issue 31
Authors
Shreya Khaitan
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News
Date
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This article was first published by the social and political economy portal IndiaSpend.


Women from poor households made about 235,000 fewer hospital visits compared to men for seven gender-neutral disease categories between January 2017 and October 2019, a new study analyzing a Rajasthan state health insurance scheme has estimated. The Bhamashah Swasthya Bima Yojana aims to provide health insurance to about 46 million persons living below the poverty line, as a step towards universal and equitable access to healthcare in the state, per the study.

Pascaline Dupas and Radhika Jain of Stanford University studied data of insurance claims from 4.2 million hospital visits under the Bhamashah scheme from its launch in December 2015 till October 2019, and the study was published as a National Bureau of Economic Research working paper. The study was conducted in partnership with the Rajasthan state government.

Women made up 45% of hospital visits under the Bhamashah scheme between January 2017 and October 2019, though their share in the population is 48%, per the study. The gender gap is starker for girls and older women. The share of girls in children aged under 10 years who visited the hospital under this insurance program was 33%, though their share of this age group's population is 47%; among those aged above 50 years, women are 51%, yet their share of hospital visits under this insurance program was 43%.

"We were struck by this discrepancy in the data. We were not expecting such a large [gender] difference," Dupas, an economist and professor at Stanford University, told IndiaSpend. In most other developed countries for which such data have been analyzed, subsidized healthcare usually caters to those who otherwise don't have access to it, added Jain, a postdoctoral fellow in Asia Health Policy at Stanford University, US.

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A new study of the Rajasthan government's Bhamashah health insurance program for poor households has found that just providing health insurance cover doesn't reduce gender inequality in access to even subsidized health care.

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Commentary
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This opinion piece was first published in the economics and policy portal Ideas for India.


Equity in healthcare is a key goal of health policy in India. Analyzing administrative data from Rajasthan, this article highlights substantial gender gaps in the utilization of subsidized hospital care under the state health insurance program. These disparities persist despite substantial program expansion and seem to be driven by households being less willing to allocate resources to female vis-à-vis male health.

Over the past 15 years, India’s central government and numerous state governments have put in place health insurance programmes that entitle low-income households to free healthcare at public and empanelled private hospitals. Health equity and universal health coverage are explicit goals of these programs. In new research, we study gender equity in the Bhamashah Swasthya Bima Yojana (BSBY)1 health insurance program, which was launched in the state of Rajasthan in 2015, and is similar in design to the national Pradhan Mantri Jan Arogya Yojana (PMJAY).

Our starting point is a dataset of insurance claims filed for all 4.2 million hospital visits between 2015 and 2019, including patient age, gender, residence address, hospital visited, dates of admission and discharge, and service(s) received. We geo-coded hospital locations and patient addresses, which allowed us to calculate proximity to hospitals and the distance traveled for every hospital visit. Finally, we linked the insurance data to the 2011 Census and data on three rounds of village-level (gram panchayat) elections. To our knowledge, the dataset we compiled from these various sources is the first dataset of its type in India and allows us to study care-seeking under insurance with unusual granularity.

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Stanford University researchers' study of Bhamashah Swasthya Bima Yojana reveals that just expanding geographical access and reducing the cost of healthcare won't reduce gender disparity.

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Using administrative data on over 4 million hospital visits, we document striking gender disparities within a government health insurance program that entitles 46 million poor individuals to free hospital care in Rajasthan, India. Females account for only 33% of hospital visits among children and 43% among the elderly. These shares are lower for more expensive types of care, and far lower than sex differences in illness prevalence can explain. Almost two-thirds of non-childbirth spending is on males. We combine these data with patient survey, census, and electoral data to show that 1) the program is unable to fully offset the costs of care-seeking, which results in disparities in hospital utilization because some households are willing to allocate more resources to male than female health; 2) lowering costs does not reduce disparities, because males benefit as much as females do; and 3) long-term exposure to village-level female leaders reduces the gender gap in utilization, but effects are modest and limited to girls and young women. In the presence of gender bias, increasing access to and subsidizing social services may increase levels of female utilization but fail to address gender inequalities without actions that specifically target females.

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Working Papers
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Gender Disparities in Utilization of Government Health Insurance in India
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National Bureau of Economic Research
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Working Paper 28972
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China’s national health reforms over the past two decades have brought the system closer to the modern, safe, reliable, and accessible health system that is commensurate with China’s dramatic economic growth, improvement in living standards, and high hopes for the next generation.

China’s national health reforms of 2009—continuing many reforms undertaken since SARS (2003)—consolidated a system of social health insurance covering the entire population for basic health services, contributing to a surge in healthcare utilization while reducing out-of-pocket costs to patients – which declined from 56% to 28% of total health expenditures between 2003 and 2017. An expanded basic public health service package, funded by per capita government budget allocations that include a higher central government subsidy for lower-income provinces, provides basic population health services to all Chinese. Now the governance structure consolidates the purchaser role for social health insurance schemes under the National Healthcare Security Administration, with most other health sector functions under the National Health Commission. China’s world-leading technological prowess in multiple fields spanning digital commerce to artificial intelligence—and accompanying innovative business models such as WeDoctor that have not yet been fully integrated into the health system—hold promise for supporting higher quality and more convenient healthcare for China’s 1.4 billion.

However, many challenges remain, from dealing with COVID-19 and its aftermath to other lingering challenges, from promoting healthy aging to the political economy of addressing patient-provider tensions, changing provider payment to promote “value” rather than volume, and deciding which new medical therapies qualify as “basic” for the basic medical insurance schemes. To make China’s investments in universal health coverage and the accompanying rapid medical spending growth sustainable in the longer run, policies need to help the most vulnerable avoid illness-induced poverty, increase health system efficiency, strengthen primary care, and reform provider payment systems.

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Testimonies
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Testimony before the U.S.-China Economic and Security Review Commission
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Karen Eggleston
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Background

In an effort to provide greater financial protection from the risk of large medical expenditures, China has gradually added catastrophic medical insurance (CMI) to the various basic insurance schemes. Tongxiang, a rural county in Zhejiang province, China, has had CMI since 2000 for their employee insurance scheme, and since 2014 for their resident insurance scheme.

Methods

Compiling and analyzing patient-level panel data over five years, we use a difference-in-difference approach to study the effect of the 2014 introduction of CMI for resident insurance beneficiaries in Tongxiang. In our study design, resident insurance beneficiaries are the treatment group, while employee insurance beneficiaries are the control group.

Findings

We find that the availability of CMI significantly increases medical expenditures among resident insurance beneficiaries, including for both inpatient and outpatient spending. Despite the greater financial protection, out-of-pocket expenditures increased, in part because patients accessed treatment more often at higher-level hospitals.

Interpretation

Better financial coverage for catastrophic medical expenditures led to greater access and expenditures, not only for inpatient admissions—the category that most often leads to catastrophic expenditures—but for outpatient visits as well. These patterns of expenditure change with CMI may reflect both enhanced access to a patient's preferred site of care as well as the influence of incentives encouraging more care under fee-for-service payment.

This study is part of Karen Eggleston's research project Addressing Health Disparities in China

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The Lancet Regional Health - Western Pacific
Authors
MinYu
Jieming Zhong
Ruying Hu
Xiangyu Chen
Chunmei Wang
Kaixu Xie
Merrell Guzman
Xiaotong Gui
Sandra Tian-Jiao Kong
Tingting Qu
Karen Eggleston
Authors
Noa Ronkin
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News
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Does the new wave of digital technologies portend a future in which robots and automation increasingly replace workers and destroy livelihoods? In one of the first studies of service sector robots, APARC experts find evidence to offset dystopian predictions of robot job replacement.

The researchers — Asia Health Policy Program Director Karen Eggleston, SK Center Fellow Yong Suk Lee, and University of Tokyo health economist Toshiaki Iizuka, our former visiting scholar — set out to examine how robots affect labor, productivity, and quality of care in Japan’s nursing homes. Their findings indicate that robot adoption may not be detrimental to labor and may help address the challenges of rapidly aging societies.

Eggleston recently joined the Future Health podcast, an initiative of the New South Wales Ministry of Health, to discuss the study and its implications. The program is available both as a video and audio podcast. Watch and listen below:

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Published by the National Bureau of Economic Research, the study suggests that robot adoption has increased employment opportunities for non-regular care workers, helped mitigate the turnover problem that plagues nursing homes, and provided greater flexibility for workers. It is also published in AHPP's working paper series and is part of a broader research project by Eggleston, Lee, and Iizuka, that explores the impact of robots on nursing home care in Japan and the implications of robotic technologies adoption in aging societies.

The study has attracted media attention. The Financial Times Magazine, in a feature story and podcast, called it “groundbreaking in several ways but perhaps most clearly for setting its sights not on manufacturing but on the services sector, where robots are only just beginning to make their mark.” The Freakonomics Radio podcast also hosted Eggleston and Lee for a conversation about their research as part of an episode on collaborative robots and the future of work.

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On the Future Health podcast, Karen Eggleston discusses the findings and implications of her collaborative research into the effects of robot adoption on staffing in Japanese nursing homes.

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