The Spillover Effects of Child Health Insurance on Non Bene ficiaries within the Household: Evidence from Vietnam

The last three decades have seen a surge in the number of government funded targeted health insurance programs introduced in developing countries. However little is known about the indirect impact of these programs on household members who are not eligible. Using variation introduced by a health insurance program targeted to children below the age of six in Vietnam, I compare changes in expenditures between households who receive insurance to those who do not. I find that beneficiary households increase spending on health and food and reduce expenditures on education. There are two explanations for the changes. The first is an increase in employment hours for adults in the households, especially of women in the households. The second is a reallocation between education and health related expenditures for children who are eligible for insurance at the expense of children who are not.