Health Insurance Figure 3.10: Effect of Illness on Probability of Coverage, 2006
effect of illness on probability of coverage
0.08 0.06
0.04 0.02 0.00 –0.02 –0.04 –0.06
no target group
family of formal sector worker
student
Decision 139 eligible
under 6
target group
policy beneficiary vol. group ins.
ins. for poor vol. family ins.
student ins. free card
results.) Older people are, however, more likely to be enrolled in the contributory program, as are women. Both groups are likely to be above-average risks from an actuarial perspective, so this result does suggest some adverse selection. Those earning more and those who are more senior in their job are more likely to enroll, which from an actuarial perspective is probably good news. The collective sector, the private sector, and the foreigninvested sector are all less likely to enroll their workers. This is particularly true for the private sector. Workers living in the northeast and Central Highlands regions are more likely to be covered by the contributory scheme. • In the case of children ages 6 or less, there is some evidence of adverse selection. Illness during the previous 12 months significantly increases the chances of a child ending up as a policy beneficiary or in receipt of a health card (figure 3.10). Older children
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