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Global Health Econ Sustain








                                        ORIGINAL RESEARCH ARTICLE
                                        The effect of the 2009 cancer coverage

                                        expansion policy in Korea



                                        Changwoo Lee*
                                        Department of Economics, Boston University, Boston, Massachusetts, United States of America



                                        Abstract

                                        This study focuses on the effect of coverage expansion policy on medical
                                        expenditures at each initial medical expenditure level. More specifically, how each
                                        structural change, such as the enforcement of coverage expansion policy and other
                                        observable  factors,  influences  the  spending  on  medical  care  using  the  relatively
                                        recently developed decomposition technique was investigated in the study. The
                                        results showed that those at the lowest or highest medical cost level benefited
                                        most from the policy change. The observable variables seemed to affect the overall
                                        differences in the cancer inpatient cost for those at the middle medical cost level,
                                        and the structural changes seemed to account for the overall change in the cancer
                                        inpatient cost for those at the lowest or the highest medical cost level. The findings of
                                        this study offer an explanation for why the coverage expansion policy could not affect
                                        the equity in health utilization and financial burden reported in previous literature.


                                        Keywords: Expansion of health insurance coverage; Medical expenditure; Decomposition
            Academic editor:
            Mihajlo Jakovljevic M.D. Ph.D. MAE
            *Corresponding author:
            Changwoo Lee                1. Introduction
            (changwooda@gmail.com)
                                        National health insurance coverage expansion is issued to improve public healthcare and
            Citation: Lee, C. (2024). The
            effect of the 2009 cancer coverage   health performance. However, such a measure also raises some concerns. By lowering
            expansion policy in Korea. Global   out-of-pocket expenses, the policy could inadvertently increase health-care utilization
            Health Econ Sustain, 2(2): 2001.   and medical expenses. Many researchers attempt to investigate the overall effectiveness
            https://doi.org/10.36922/ghes.2001   of the policy, but its effect on health promotion is challenging to quantify. Under the
            Received: October 10, 2023  premise that medical service utilization directly affects health promotion, most studies
            Accepted: February 19, 2024  only analyze the impact of the policy on equitable distribution of medical expenses and
                                        health-care utilization by each income quantile (Kim et al., 2008; Choi, 2012; Kim et al.,
            Published Online: June 4, 2024  2014; Kim & Kwon, 2014a, 2014b; Kim & Kwon, 2015).
            Copyright: © 2024 Author(s).
            This is an Open-Access article   This study focuses on the effect of coverage expansion policy on the medical
            distributed under the terms of the   expenditure by each initial medical expenditure level. More specifically, how each
            Creative Commons Attribution   structural change (enforcement of coverage expansion policy) and other observable
            License, permitting distribution,
            and reproduction in any medium,   factors influence the spending on medical care was investigated in this study. The findings
            provided the original work is   will illuminate whether such a change in policy alone aggravates health-care utilization,
            properly cited.             a reflection of whether the policy has effectively distributed the use of medical services
            Publisher’s Note: AccScience   throughout all levels of medical expenditure groups who are National Health Insurance
            Publishing remains neutral with   subscribers. This study attempts to quantify how the policy benefits those who receive
            regard to jurisdictional claims in
            published maps and institutional   the medical coverage for the first time. The results revealed that subscribers with the most
            affiliations.               medical use received magnified, disproportionate coverage from the insurance since the


            Volume 2 Issue 2 (2024)                         1                        https://doi.org/10.36922/ghes.2001
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