The Individual Demand for Private Health Insurance in Malaysia
The main purpose of this study is to determine the factors that affect the individual decision to purchase health insurance and the level of coverage purchased. In addition, this study attempts to profile the policyholders and compare this against the profile of non policyholders, and also estimate...
Saved in:
| Main Author: | |
|---|---|
| Format: | Thesis |
| Language: | eng eng |
| Published: |
2012
|
| Subjects: | |
| Online Access: | https://etd.uum.edu.my/3280/1/ARPAH_ABU_BAKAR.pdf https://etd.uum.edu.my/3280/2/ARPAH_ABU_BAKAR.pdf |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| id |
my-uum-etd.3280 |
|---|---|
| record_format |
uketd_dc |
| institution |
Universiti Utara Malaysia |
| collection |
UUM ETD |
| language |
eng eng |
| advisor |
Regupathi, Angappan@Chockalingam Syed Junid, Syed Aljunid |
| topic |
RA410.55 Hospital Care. HG Finance |
| spellingShingle |
RA410.55 Hospital Care. HG Finance Arpah, Abu Bakar The Individual Demand for Private Health Insurance in Malaysia |
| description |
The main purpose of this study is to determine the factors that affect the individual decision to purchase health insurance and the level of coverage purchased. In addition, this study attempts to profile the policyholders and
compare this against the profile of non policyholders, and also estimates the price elasticity of health insurance demand. A model to predict the likelihood of purchasing health insurance is also proposed. The thesis was developed based mainly on the Utility Theory, Prospect Theory and Bounded Rationality Theory. The dataset was obtained from the National Health and Morbidity Survey III. The two major analytical tools employed were logistic regression and the Heckman two-stage estimator. Due to the multicollinearity problem, the dataset were split into salaried and non-
salaried individuals and were analyzed separately. The results revealed that the likelihood of health insurance purchase among the salaried individuals was higher if the individual’s income and education were higher, and if the individual was a female, was a non-Muslim, was a civil servant, as well as if the individual was more risk averse, while the effect of age was nonlinear. The results also showed that those who were older, earned higher income, female, non-Muslims, had high out-of-pocket costs for health care tended to seek a higher amount of coverage. Individuals were less likely to purchase health insurance when the price increased and the price elasticity was relatively low indicating that a high subsidy would be needed to induce purchase. Given individual characteristics, the models were found to be useful in predicting individual’s likelihood in purchasing health insurance for both the salaried and non salaried individuals. The findings offer useful inputs for insurance industry players and policy makers on various issues, including health care financing in Malaysia. |
| format |
Thesis |
| qualification_name |
Ph.D. |
| qualification_level |
Doctorate |
| author |
Arpah, Abu Bakar |
| author_facet |
Arpah, Abu Bakar |
| author_sort |
Arpah, Abu Bakar |
| title |
The Individual Demand for Private Health Insurance in Malaysia |
| title_short |
The Individual Demand for Private Health Insurance in Malaysia |
| title_full |
The Individual Demand for Private Health Insurance in Malaysia |
| title_fullStr |
The Individual Demand for Private Health Insurance in Malaysia |
| title_full_unstemmed |
The Individual Demand for Private Health Insurance in Malaysia |
| title_sort |
individual demand for private health insurance in malaysia |
| granting_institution |
Universiti Utara Malaysia |
| granting_department |
Othman Yeop Abdullah Graduate School of Business |
| publishDate |
2012 |
| url |
https://etd.uum.edu.my/3280/1/ARPAH_ABU_BAKAR.pdf https://etd.uum.edu.my/3280/2/ARPAH_ABU_BAKAR.pdf |
| _version_ |
1747827537110630400 |
| spelling |
my-uum-etd.32802022-04-10T06:28:31Z The Individual Demand for Private Health Insurance in Malaysia 2012 Arpah, Abu Bakar Regupathi, Angappan@Chockalingam Syed Junid, Syed Aljunid Othman Yeop Abdullah Graduate School of Business Othman Yeop Abdullah Graduate School of Business RA410.55 Hospital Care. HG Finance The main purpose of this study is to determine the factors that affect the individual decision to purchase health insurance and the level of coverage purchased. In addition, this study attempts to profile the policyholders and compare this against the profile of non policyholders, and also estimates the price elasticity of health insurance demand. A model to predict the likelihood of purchasing health insurance is also proposed. The thesis was developed based mainly on the Utility Theory, Prospect Theory and Bounded Rationality Theory. The dataset was obtained from the National Health and Morbidity Survey III. The two major analytical tools employed were logistic regression and the Heckman two-stage estimator. Due to the multicollinearity problem, the dataset were split into salaried and non- salaried individuals and were analyzed separately. The results revealed that the likelihood of health insurance purchase among the salaried individuals was higher if the individual’s income and education were higher, and if the individual was a female, was a non-Muslim, was a civil servant, as well as if the individual was more risk averse, while the effect of age was nonlinear. The results also showed that those who were older, earned higher income, female, non-Muslims, had high out-of-pocket costs for health care tended to seek a higher amount of coverage. Individuals were less likely to purchase health insurance when the price increased and the price elasticity was relatively low indicating that a high subsidy would be needed to induce purchase. Given individual characteristics, the models were found to be useful in predicting individual’s likelihood in purchasing health insurance for both the salaried and non salaried individuals. The findings offer useful inputs for insurance industry players and policy makers on various issues, including health care financing in Malaysia. 2012 Thesis https://etd.uum.edu.my/3280/ https://etd.uum.edu.my/3280/1/ARPAH_ABU_BAKAR.pdf text eng public https://etd.uum.edu.my/3280/2/ARPAH_ABU_BAKAR.pdf text eng public Ph.D. doctoral Universiti Utara Malaysia Ajzen,I. (2002).Residual Effects of Past on Later Behavior: Habituation and Reasoned Action Perspectives. Personality and Social Psychology Review, 6(2), 107-122. Amemiya,T. (1994). Introduction to Statistics and Econometrics. London: Havard University Press. Arpah Abu Bakar, Habibah Tolos, & Lakehal Ayat,M. (2002). Employees Health Benefits Plan at Universiti Utara Malaysia: A Case Study. International Journal of Case Studies and Research, 7(1), 31-55. Arpah Abu Bakar, Habibah Tolos, & Razli Che Razak. (2004). Factors That Affect the Non-corporate Demand For Health Insurance (Research Report): University Utara Malaysia. Auerbach,D., & Ohri,S. (2006). Price and the Demand for Nongroup Health Insurance. Inquiry-Excellus Health Plan, 43(2), 122-134. Bank Negara Malaysia. (2005). Insurance Annual Report. Malaysia: Author. Bank Negara Malaysia. (2007). Financial Stability and Payment Systems Report. Kuala Lumpur: Bank Negara Malaysia. Bank Negara Malaysia. (2009a). Annual Takaful Statistics, Retrieved 2011, from http://www.bnm.gov.my Bank Negara Malaysia. (2009b). Insurance Annual Statistics, Retrieved 2011, from http://www.bnm.gov.my Bank Negara Malaysia. (2010a). Annual Takaful Statistics, Retrieved 2011, from http://www.bnm.gov.my Bank Negara Malaysia. (2010b). Insurance Annual Statistics, Retrieved 2011, from http://www.bnm.gov.my Barringer,M.W., & Mitchell,O.S. (1994).Workers' Preferences Among Company-Provided Health Insurance Plans. Industrial and Labor Relations Review, 48(1), 141-152. Besley,T., Hall,J., & Preston,I. (1999). The Demand for Health Insurance: Do Waiting Lists Matter? Journal of Public Economics, 72(2), 155-181. Bhat,R., & Jain,N. (2006). Factoring Affecting the Demand for Health Insurance in a Micro Insurance Scheme. Ahmedabad , India: Indian Institute of Management. Blumberg,L.,J, Nichols,L.M., & Banthin,J.S. (2001). Worker Decisions to Purchase Health Insurance. International Journal of Health Care Finance and Economics, 1(3-4),305-325 Breen,R. (1996). Regression Models: Censored, Sample Selected or Truncated Data. London: Sage Publications. Browne,M.J., & Kim,K. (1993). An International Analysis of Life Insurance Demand. The Journal of Risk and Insurance, 60(4), 616-634. Buchmeuller,T.C., & Ohri,S. (2006).Health Insurance Take-Up By The Near-Elderly. Health Services Research, 41(6), 2054- 2073. Buchmueller,T.C., Grumbach,K., Kronick,R., & Kahn,J.G. (2005). The Effect Of Health Insurance On Medical Care Utilization And Implications For Insurance Expansion: A Review Of The Literature. Medical Care Research And Review, 62(1), 3-30. Burrows,C., & Brown,K. (1988). Health Insurance Decision-Making: A Literature Survey, Some Conclusion and A Few Suggestions. Paper presented at the Tenth Australian Conference of Health Economists, Clayton. Camerer,C., & Weber,M. (1992). Recent Developments in Modeling Preferences: Uncertainty and Ambiguity. Journal of Risk and Uncertainty, 5(325-370). Cameron,A.C., Trivedi,P.K., Milne,F., & Piggott,J. (1988). A Microeconometric Model of the Demand for Health Care and Health Insurance in Australia. Review of Economic Studies, 1988, 85-106. Chernew,M.E., Frick.,K., & McLaughlin.,C.G. (1997). The Demand for Health Insurance Coverage by Low-Income Workers: Can Reduced Premiums Achieve Full Coverage? Health Services Research, 32(4). Chua,H.T. (2009). Health Care Financing (HCF): What Options for Malaysia. Retrieved 2009, from http://www.epu.gov.my/... /HCF_What_Options_for_Malaysia_1420080107.pdf Cutler,D.M., & Gruber,J. (1996).Does Public Insurance Crowd Out Private Insurance? The Quarterly Journal of Economics, May, 391-430. de Canniere,M.H., De Pelsmacker,P., & Geuens,M. (2008). Relationship Quality and Theory of Plan Behavior Models of Behavioral Intentions and Purchase Behavior: Universiteit Gent. DeMaris,A. (2004). Regression with Social Data: Modeling Continuous and Limited Response Variables. USA: John Wiley & Sons. Department of Statistics. (2000). Report on Household Expenditure Survey Malaysia 1998/99. Kuala Lumpur: Author. Department of Statistics. (2006). Report on Household Expenditure Survey Malaysia 2004/05. Kuala Lumpur: Author. Dewar,D.M. (1998). Do Those with More Formal Education have Better Health Insurance Opportunities? Economics of Education Review, 17(3), 267-277. Dewar,D.M. (2000).Gender Impacts on Health Insurance Coverage: Findings for Unmarried Full-Time Employees. Women Health Issues, 10(5). Economic Planning Unit. (1981).Fourth Malaysia Plan 1981- 1985. Malaysia: Author. Economic Planning Unit. (1996).Seventh Malaysia Plan 1996- 2000. Malaysia: Author. Economic Planning Unit. (2001).Eight Malaysia Plan 2001- 2005. Malaysia: Author. Ekman,B., Liem,N.T., Duc,H.A., & Axelson,H. (2008). Health Insurance Reform in Vietnam: A Review of Recent Developments and Future Challenges. Health Policy and Planning, 23(252- 263). Ellis,R.P. (1989). Employee Choice of Health Insurance. The Review of Economics and Statistics, 71(2), 215-223. Feldman,R., Finch,M., Dowd,B., & Cassou,S. (1989). The Demand For Employment-Based Health Insurance Plans. The Journal of Human Resources, 24(1), 115-142. Fishbein,M., & Ajzen,I. (1972). Attitudes and Opinions. Annual Review of Psychology, 23(1), 487-544. Friedman,B. (1955). What All is Utility? The Economic Journal, 65(259), 405-409. Friedman,B. (1974).Risk Aversion and the Consumer Choice of Health Insurance Option. Review of Economics and Statistics , 56(2), 209-214. Friedman,B., & Savage,L.J. (1948).The Utility Analysis of Choices Involving Risk. The Journal of Political Economy, 56(4), 279-304. Glied,S. (1994). Revising the Tax Treatment of Employer-Provided Health Insurance. In American Enterprise Institute Special Studies in Health. Washington, D.C.: American Enterprise Institute. Greene,W.H. (2008).Econometric Analysis (6th ed.): Pearson/ Prentice Hall. Grossman,M. (1972).On the Concept of Health Capital and the Demand for Health. Journal of Political Economy, 80(2), 223. Gruber,J., & Poterba,J. (1994). Tax Incentives and the Decision to Purchase Health Insurance: Evidence from the Self-Employed. Quaterly Journal of Economics, 109(3),701-733 Hair,J.F., Anderson,R.E., Tatham,R.L., & Black,W.C. (1998). Multivariate Data Analysis (5th ed.). USA: Prentice-Hall. Hanoch,Y., & Rice,T. (2006). Can Limiting Choice Increase Social Welfare? The Elderly and Health Insurance. The Milbank Quarterly, 84(1), 37-73. Healthcare for Free. (2010, 11 Jul 2010). NST Online. Heim,B.T., & Lurie,I.Z. (2009). Do Increased Premium Subsidies Affect How Much Health Insurance is Purchased? Evidence from the Self-Employed. Journal of Health Economics , 20, 1197-1210. Hurd,M.D., & McGarry,K. (1997). Medical Insurance and the Use of Health Care Services by the Elderly. Journal of Health Economics, 16, 129-154. Institute for Public Health. (2008). National Health and Morbidity Survey III. Malaysia: Author. Jofre-Bonet,M. (2000). Public Health Care and Private Insurance Demand: The Waiting Time As a Link. Health Care Management Science, 3(1), 51-71. Jowett,M. (2003). Do Informal Risk Sharing Networks Crowd Out Public Voluntary Health Insurance? Evidence from Vietnam. Applied Economics, 35, 1153-1161. Kahneman,D., & Tversky,A. (1979). Prospect Theory: An Analysis of Decisions Under Risk. Econometrica, 47(2), 263- 291. Kan,M., & Suzuki,W. (2006). The Demand for Medical Care in Japan: Initial Findings From a Japanese Natural Experiment. Applied Economic Letters, 13, 273-277. Koc,C. (2005).Health-Specific Moral Hazard Effects.Southern Economic Journal, 72(1), 98-118. Kronick,R., & Gilmer,T. (1999). Explaining the Decline in Health Insurance Coverage, 1979-1995. Health Affairs, 18(2), 30-47. Kunreuther,H., & Pauly,M. (2006).Insurance Decision-Making and Market Behavior.Foundations and Trends in Microeconomics , 1(2),63-127. Leung,S.F., & Yu,S. (1996). On the Choice Between Sample Selection and Two-Part Models. Journal of Econometrics, 72, 197-229. Liu,T.C., & Chen,C.S. (2002). An Analysis of Private Health Insurance Purchasing Decisions with National Health Insurance in Taiwan.Social Science and Medicine, 55,755-774. Long,S.H., & Marquis,M.S. (2002). Participation in a Public Insurance Program: Subsidies, Crowd-Out, and Adverse Selection. Inquiry-Excellus Health Plan, 39(3), 243-257. Madden,D. (2008). Sample Selection versus Two-Part Models Revisited: The Case of Female Smoking and Drinking. Journal of Health Economics, 27, 300-307. Malaysian Employers Federation. (2005). Salary and Fringe Benefit Survey for Executives. Malaysia: Author. Malaysian National Health Account (MNHA) Unit. (2008). Health Expenditure Report (1997-2000). Malaysia: Author. Manning,W.G., & Marquis,M.S. (1996).Health Insurance: The Tradeoff Between Risk Pooling And Moral Hazard. Journal of Health Economics, 15, 609-639. Manning,W.G., Newhouse,J.P., Duan,N., Keeler,E.B., & Leibowitz,A. (1987). Health Insurance and the Demand for Medical Care: Evidence from a Randomized Experiment. The American Economic Review, 77(3), 251-277. Marquis,M.S., Buntin,M.B., Escarce,J.J., Kapur,K., Louis,T. A., & Yegian,J.M. (2006). Consumer Decision Making in the Individual Health Insurance Market. Health Affairs, Web Exclusive May 2, 226-334. Marquis,M.S., Buntin,M.B., Escarce,J.J., Kapur,K., & Yegian ,J.M. (2004).Subsidies And The Demand For Individual Health Insurance In California. Health Services Research, 39(5), 1547-1570. Marquis,M.S., & Holmer,M.R. (1996). Alternative Models of Choice under Uncertainty and Demand for Health Insurance. The Review of Economics and Statistics, 78(3), 421-427. Marquis,M.S., & Long,S. (1995). Worker Demand for Health Insurance in the Non-Group Market. Journal of Health Economics, 14(1), 47-64. Ministry of Health Malaysia. (2004). Annual Report 2003. Malaysia: Author. Monheit,A.C., & Vistnes,J.P. (2000). Race/Ethnicity and Health Insurance Status: 1987 amd 1996. Medical Care Research and Review, 57(11). Naito,K. (2009). Health Care Insurance in Japan: Beyond a Binary Vision of State and Family. International Social Security Review (3), 49-77. Nyman,J.A. (2004).Is 'Moral Hazard' Inefficient? The Policy Implication of a New Theory. Health Affairs, 23(5), 194-199. 213 Paringer,L. (2007).Hispanic Workers and Employer Sponsored Health Insurance. American Economist, 51(1), 40-53. Pauly,M.V., & Herring,B. (2007). The Demand for Health Insurance in the Group Setting: Can You Always Get What You Want? Journal of Risk and Insurance, 74(1), 115-140. Propper,C. (1989). An Economeric Analysis of the Demand for Private Health Insurance in England and Wales. Applied Economics, 21(6), 777-792. Reisman,D. (2006).Payment for Health in Singapore.Internatio nal Journal of Social Economics, 33(1/2), 132-159. Saver,B.G., Doescher,M.P., Symons,J.M., Wright,G.E., & Andrilla,C.H. (2003). Racial and Ethnic Disparities in the Purchase of Nongroup Health Insurance: The Roles of Community and Family Level Factors. Health Services Research, 38(1, Part 1). Schneider,P. (2004). Why Should the Poor Insure? Theories of Decision-Making in The Context of Health Insurance. Health Policy and Planning, 19(6), 349-355. Schur,C.L., & Berk,M.L. (1998). Choice of Health Plan: Implications for Access and Satisfaction. Health Care Financing Review, 20(1), 29-43. Short,P.F., & Taylor,A.K. (1989). Premiums, Benefits and Employee Choice of Health Insurance Premium Options. Journal of Health Economics, 8(3), 293-311. Simon,H.A. (1955).A Behavioral Model of Rational Choice. The Quarterly Journal of Economics, 69(1), 99-118. Simon,H.A. (1986). Rationality in Psychology and Economics. The Journal of Business, 59(4), S209-S224. Spehri,A., Moshiri,S., Simpson,W., & Sarma,S. (2008). Taking Account of Context: How Important are Household Characteristics in Explaining Adult Health-Seeking Behavior ? The Case of Vietnam. Health Policy and Planning, 23(397- 407). Sturman,M.C., Boudreau,J.W., & Corcoran,R.J. (1996). Why Do Employees Keep Choosing The High-Premium Health Care Plan? An Investigation Of The Financial Consequences And Logic Of Employee Health Care Plan Selections. Human Resource Management, 35(1), 317 - 342. Syed Aljunid. (1996). Role of Primary Care Doctors in Private Sector., Retrieved 2005, from http://pcdom.org.my/index.php/primary-care Tobin,J. (1958). Estimation of Relationships for Limited Dependent Variables. Econometrica, 31, 24-36. Wonnacott,R.J., & Wonnacott,T.H. (1985). Introductory Statistics (4th ed.). Singapore: John Wiley & Sons. World Health Organization. World Health Report. (2008). Retrieved 2010, from http://www.who.int/whr/2008/en/index. html World Health Organization. World Health Statistics. (2010). Retrieved 2011, from http://www.who.int/entity/whois/whostat/EN_WHS10_Part2.pdf World Health Organization. World Health Statistics. (2011). Retrieved 2011, from http://www.who.int/entity/whois/whostat/EN_WHS2011_Part2.pdf |