Supplementary Private Health Insurance and Household Debt, Health Care Utilization, and Medical Spending Following A Health Shock

Abstract

This article aims to evaluate the effect of enrolling in supplementary private health insurance on household debt, medical spending, and medical service use among South Koreans experiencing a health shock. Using data from the Korean Welfare Panel Study from 2009 through 2017, we compared household debt and health service use for those with and without private supplemental health insurance after experiencing a health shock. We found no significant differences in household debt or the financial burden of a health shock between those with and without supplemental health insurance coverage following a shock. Households with supplemental coverage used more medical services compared to households without supplementary coverage and incurred additional medical expenses.