Cures for the health insurance enrollment blues
Some countries with national health insurance plans face a basic problem: Not enough people sign up for those programs, and the ones who do tend to have worse-than-average health. That is a public health matter, but also a fiscal issue. When more healthy people enroll in health care plans, and thus pay premiums, those plans gain a better fiscal footing. What’s a good way to address this challenge? A recently published study in Indonesia led by MIT economists yields new insights, which could apply globally. The study involves a three-pronged experiment in which people received either encouragement to enroll through subsidies, assistance with the signup process, or information about the program’s benefits. For starters, full subsidies for program participants increased enrollment by 18.6 percentage points, the experiment revealed. “We do find that subsidies make a difference,” says Benjamin Olken, an MIT economist and co-author of the paper detailing the experiment’s results. But ...