Smoking Behavior of Middle-Class Household and Participation in Private Health Insurance

Abstract

Health insurance is a system of financial protection against possible risks in uncertain conditions, obtain better facilities and health services when ill. Illness gavethe consequences of the risk of losing income opportunities and increasinghealthcare spending. Mostly, consumers of private health insurance wereMiddle-class (per capita expenditure US $ 2 - US $ 20 per day). The number of them was relatively large (52.8 percent), but low enrolment on private health insurance (8.2 percent). Using 156,980-row data of Indonesia socioeconomic survey Q₁-2017 (Susenas), the study aim to determine the effect of smoking behavior of middle-class households on private health insurance.To achieve the research objectives, a logistic model was used using Stata software. This study found that education o head family, employee status, household size significantlyinfluenced private health insurance enrolment,conversely smoking behavior negatively influenced the probability of private health insurance enrolment. The probability of smoking influenced private health insurance enrolment 0.74 times lower than not smoking. Supposedly, there was a presence of advantages selection in the case of smokers in Indonesia.Smokers knew catastrophic health spending of diseasedue to smoking. Expanding insurance coverage due to smoking behavior requires a higher cost of health insurance paid (premium risk). It caused smokersto prefer partial health insurance coverage rather than comprehensive coverages.