Does Microinsurance Help the Poor? Evidence from the Targeted Health Microinsurance Program in 2004-2008

This paper evaluates the Health Care Fund for the Poor (HCFP), a scheme that was initiated in Vietnam in 2003. The paper shows that participation in the HCFP program reduced the out-of-pocket health care expenditure of poor participants, increased the intensity with which the poor sought health care and regular check-ups in public health facilities. The paper also reveals that the HCFP helped reduce the incidence of catastrophic spending when dealing with adverse health events. The paper addresses the possible selection bias of insurance participation by means of fixed-effects models and an instrument variable method within fixed-effects.