This ISG will examine how the introduction of Indonesia’s National Health Insurance scheme (JKN) rollout in 2014 affected private insurance uptake and, in turn, patterns of h
Event details
Time: 8:30-10:00am WIB // 12:30-2:00pm AEDT
Join in-person: McDonald Room, Menzies Library, ANU
Join online: bit.ly/ISG_indonesiaproject
Event's abstract
Public healthcare systems worldwide face rising fiscal pressures due to an ageing population, the burden of chronic diseases, and a stagnating workforce. A widely adopted policy to reduce public spending is the creation of dual public-private health insurance systems in which private coverage supplements public coverage. However, expanding public health insurance in countries with existing private insurance markets may affect demand for private coverage, potentially undermining the intended fiscal sustainability. This study examines how the introduction of Indonesia’s National Health Insurance scheme (JKN) rollout in 2014 affected private insurance uptake and, in turn, patterns of healthcare utilization. Using the Indonesian National Socioeconomic Survey (SUSENAS) from 2009 to 2018 in a difference-in-differences design, we found that following the rollout of JKN, households in the upper decile reduced their private insurance purchases, suggesting they viewed JKN as a substitute for private coverage. We find that overall inpatient use increased as households increasingly chose private hospitals over public hospitals. The trend towards private inpatient care, combined with the avoidance of public hospitals, indicates possible quality disparities between public and private facilities. Policymakers may need to effectively balance the public and private healthcare markets and ensure that private insurance complements, rather than competes with JKN.
Closed captioning will be available for all online Zoom presentations. If you are attending in person and require accessibility accommodations or a visitor Personal Emergency Evacuation Plan (PEEP), please contact the ANU Indonesia Project at Indonesia.Project@anu.edu.au
Image cr: Mufid Majnun on Unsplash
Event Speakers
Giovanni van Empel
Giovanni is a Research Fellow at the Department of Health Economics, Wellbeing, and Society, ANU. His research interests draw from the intersection of health economics and labour economics. His primary area of interest focuses on the organizational features of the healthcare system, such as hospital competition and peer influence, that affect healthcare delivery.