ArticleBMC health services research2022
Price elasticity of demand for voluntary health insurance plans in Colombia.
Article in BMC health services research, 2022. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 3 papers.
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Who cites it
3 citing papers in PubMed.
- Can Health Insurance Mandates and Tax Credits Reduce Coverage Gaps and Out of Pocket Cost in Small Island Developing States? Modelling the Eastern Caribbean.The International journal of health planning and management · 2026Article
- The impact of periodic updates to health benefits plan: access gains without cost savings?International journal of health economics and management · 2025Article
- Study on the willingness to enroll in the urban and rural residents basic medical insurance: from the perspectives of policy awareness and institutional trust.Frontiers in public health · 2025Article
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Authors and funding
4 authors.
Funding
Abstract
backgroundSince 1993, Colombia has had a mandatory social health insurance scheme that aims to provide universal health coverage to all citizens. However, some contributory regime participants purchase voluntary private health insurance (VPHI) to access better quality health services (i. e., physicians and hospitals), shorter waiting times, and a more extensive providers' network. This article aims to estimate the price elasticity of demand for the VPHI market in Colombia.
methodsWe use data from the 2016-2017 consumer expenditure national survey and apply a Heckman selection model to address the selection problem into purchasing private insurance. Using the estimation results to further estimate the price semi-elasticity for VPHI, we then calculate the price elasticity for the households' health expenditure and acquisition of VHPI.
resultsOur main findings indicate that a 1% VPHI price increase reduces the proportion of households affiliated to a VPHI in the country by about 2.32% to 4.66%, with robust results across sample restrictions. There are relevant differences across age groups, with younger households' heads being less responsive to VPHI price changes.
conclusionsWe conclude that the VPHI demand in Colombia is noticeably elastic, and therefore tax policy changes can have a significant impact on public health insurance expenditures. The government should estimate the optimal VPHI purchase in order to reduce any welfare loss that the current arrangement might be generating.
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