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    The Impact of Universal Healthcare

    Coverage (Jamsoskes)in South Sumatera

    23rd Pacific Conference of The Regional Science Association International

    (RSAI) & 4th Indonesian Regional Science Association (IRSA) Institute

    Hotel Savoy Homan, Bandung, 2-4 July 2013

    Institute for Economic and Social Research

    Faculty of Economics University of Indonesia (LPEM FEUI )

    Ari Kuncoro, Ifa Isfandiarni and Hengky Kurniawan

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    Background

    2

    South Sumatera ranks in the bottom third life expectancy, infant and maternal mortality rates, and

    malnourishment among children (UNDP, 2010).

    In January 2009, the provincial government of South

    Sumatera institutedJaminan Sosial Kesehatan (Jamsoskes) universal healthcare coverage

    free basic health services to the 4 million citizens

    excludesJamkesmas,ASKES, Jamsostek, etc.

    eligible population constitutes about a half of the totalpopulation.

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    Research Questions

    3

    DoesJamsoskes increase the number of inpatient, outpatient,and prenatal care visits?

    Do families increase their utilization of all healthcare services?

    Are levels of utilization different by age, education, and gender?

    Is there any variation on utilization ofJamsoskes by urbanversus rural areas, and income group?

    What are the effects on health outcomes (infant and adult)?

    What are the effects on days of normal activity that was

    disrupted due to illness?

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    Region and Context

    4

    Area: 99,888.28 kmsq

    11 districts and 4 cities,

    district of Ogan Komering Ilir

    (biggest area) and city of

    Palembang (highest density) Border: Jambi, Bangka

    Belitung, Bengkulu and

    Lampung

    Population: 7.4 millions

    Main sector: mining and

    services

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    Evolution of Jamsoskes in South

    Sumatera

    2002: Askes Perdana, District ofMusi Banyuasin (Muba) (selectedpoors)

    2003-2004: Gakin Muba (poors)

    2005: Gakin Muba joined AskeskinNasional (poors)

    2007: Mubas Jamkesda (universalhealth care)

    2009: South Sumatera Provinces

    Jamsoskes Covers more than half population

    Cost shares between provincialgovt. and districts/cities govts (30-50% paid by districts/cities)

    5

    ASKES PNS

    6%JAMSOSTEK

    1%

    JAMKESMAS39%

    TNI/POLRI

    1%JAMKES

    SWASTA

    1%

    JAMSOSKESSUMSEL 52%

    Proportion of Health Insurance by

    Type (2012)

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    Demand for Health and Health Care (1)

    6

    Health as capital (Grossman, 1974)

    People invest when marginal benefit exceeds the marginal cost

    Health insurances are rare in developing countries (Gertler and Gruber,2002)

    Households face big portion of out-of-pocket expenditures Financial catastrophic endangers the familys ability to maintain its

    standard of living (Berki, 1986)

    There are varieties of catastrophic expenditures among countries (Xu et.al,2003)

    Households spend less on food following a health shock (Wagstaff, 2007)

    Health insurance increases the number of visits in health care center (Ekowati,

    2009)

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    Demand for Health and Health Care (2)

    7

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    Methodology (1)

    8

    Data Riskesdas 2007 & 2010, Susenas 2006 &2011, PODES 2008

    Model to be estimated

    edisturbanccomponent/error:v

    Jamsoskes)afterand(beforedummyvariabel:D

    puskesmas)hospital,(e.g.facilityhealthofchoice:F

    rural)urban,(e.g.variablecontrol:C

    sticcharacterihousehold:Xsticcharacteriindividual:I

    estimatedbetoparameter:

    indicatorhealthoroutcome:h

    ik

    ik

    k

    ik

    ik

    ikikkikkikikik

    ikikkikik

    vCDDFDXDIFCXIh

    vDFCXIh

    87654321

    54321

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    Methodology (2)

    9

    By adding other variables we get:

    Interaction among the variables:

    Above equations are estimated by maximum likelihood method

    see annexes for detail tables of estimation results

    jj'everyfor}{[

    jj'everyfor}'{[:(j)facilitieshealthusingin(i)individualanof)(yProbabilit

    '

    ijijijijr

    ijijrij

    ij

    euevP

    uuPPP

    ijkikkikijk DFCXIP 54321

    ijkikkikkikikijk vCDDFDXDIFCXIP 87654321

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    Results and Interpretation (1)

    10

    Multinomial Outpatient Choices - Basic regression

    (government hospital as a base): The elder patient is more likely to visit government hospital compared

    to other health facilities, while household income has mixed result Distance to hospital & percentage of paved road persistently affect the

    choice of government hospital

    Multinomial Outpatient Choices - Interactive terms

    (government hospital as a base) The poor family tends to useJAMSOSKES to the utmost. The coefficients of all choices are negative and significant which means

    there is a huge shift to government hospital for outpatient treatment Compared to Sumatra with no health care program; there is an increase

    of demand for private doctor/polyclinic. People go to private doctor to get good diagnosis before joining free

    health care despite having to pay fees.

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    Results and Interpretation (2)

    11

    Multinomial Inpatient Choices Basic Regressions

    (government hospital as a base) Age variable is the only significant for PUSKESMAS.

    The negative coefficient suggests that as a person gets older the lesslikely he or she chooses PUSKESMAS relative to government hospital.

    Education is not important in the choice. Richer family tends to use private relative to private hospital.

    Multinomial Inpatient Choices Interacted Terms (governmenthospital as a base)

    Urban people tend not choose PUSKESMAS but rather to go to government

    hospital. In the choice of private health worker both urban dummy and its interaction

    with time dummy are significant.

    The coefficient sign indicates that after the program is introduced in 2009 more

    urban dweller move away from private health worker to government hospital.

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    Results and Interpretation (3)

    12

    Multinomial Choices of Birth Helper BasicRegressions (doctor as a base) The impact of age is uniform across all choices.

    Higher household incomes prefer doctor for birth helper.

    The introduction ofJAMSOSKES makes people less likely to choosemidwife and traditional midwife over doctor

    As more and more midwife available locally paramedic and traditionalmidwife will no longer an attractive option.

    Multinomial Choices of Birth Helper InteractiveTerms (doctor as a base)

    The Jamkesmas benefit the poor family The urban people are also benefitting in the same sense that they are

    moving to doctor as a birth helper and leaving out midwife, paramedic andtraditional midwife.

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    Results and Interpretation (4)

    13

    Probability of Being Sick Impact ofJAMSOSKES is reducing the probability of being sick for all

    cases considered.

    The probability of being sick is related positively with age.

    While higher education attainment tends to reduce the probability ofsickness.

    But high household apparently does not prevent someone from beingsick.

    Poisson Regression: South Sumatra Impacts on Daysof Illness

    Older people seem to suffer longer than younger when they get ill. It suggests that marriage people tend to have fewer days of illness

    None of the interactive terms is significant suggesting that the sicknessof this type does not prevent one from continuing to work.

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    Conclusions

    14

    Increased demand for government hospital appears to

    overburden

    But Puskesmas as sorting system is working

    Does not diminish the role of private doctor

    In the inpatient case, non-doctor health worker is preferred.

    In remote area, this reduce the number of visits in Puskesmas

    In the case of woman in childbirth, medical doctor is preferred,

    causing in reduction of other facilities

    Good infrastructure plays an important role

    Jamsoskes does not reduce normal activity that was disrupted

    due to illness

    Absorption of light illness

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    Policy Implications

    15

    Health workers at remote areas should be improved as they serve as

    a first stop before continuing to government hospital. This will reduce excess demand for government hospital at district level. PUSKESMAS should also add more staffs to anticipate the higher

    utilization of this health facility by the expecting mothers.

    In term of budgeting policy the local government could focus on

    building and maintaining good roads while at the same time optimizingthe use of PUSKESMAS system by upgrading their capabilities and/orbuilding hospital. This is because PUSKESMAS are in effect in competition with each other

    in attracting patient.

    The socialization of staying at home if sick should be carried outmore frequent to all people so as to reduce spreading disease tofellow workers.

    The role of modern trained midwife should be strengthened inreducing IMR among the poor.

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    16

    (1) (2) (3) (4)VARIABLES Private

    Hospital PrivateDoctor/Polyclinic

    PUSKESM

    AS

    /PUSTUPrivate

    Health

    WorkerAge 0.00404 -0.00931*** -0.0171*** -0.0132***

    (0.930) (-3.321) (-6.361) (-4.811)H. school and

    above0.332 -0.200 -0.838*** -0.841***

    (1.427) (-1.246) (-5.123) (-5.058)Household

    income 0.403** 0.250** -0.495*** -0.307***(2.339) (2.147) (-4.321) (-2.639)

    Year 2011 -4.023** 0.568 3.129** 1.373(-2.270) (0.466) (2.572) (1.053)

    % paved road -0.00341 -0.00192 -0.00595* -0.0112***(-0.721)

    (-0.587)

    (-1.908)

    (-3.563)

    Hilly region -0.0216** -0.000360 -0.00360 -0.00273

    (-2.314) (-0.0966) (-0.993) (-0.749)N. of hospital 2.818** 1.199 -1.227 -0.00865

    (2.029) (1.361) (-1.414) (-0.00946)N. of polyclinic -0.744 -0.132 0.468 -0.466

    (-1.057) (-0.276) (0.987) (-0.962)N. of puskesmas 0.410 -0.905 -1.064* 0.528

    (0.456) (-1.574) (-1.891) (0.896)Dist. to hospital -0.00182 0.0133** 0.00934* 0.0370***(-0.190) (2.277) (1.661) (6.640)Dist. to polyclinic 0.00714 -0.0177** 0.00303 -0.0149**

    (0.649) (-2.429) (0.445) (-2.194)Dist. to

    puskesmas 0.0217 -0.00587 0.00889 -0.0346**(1.028) (-0.344) (0.589) (-2.186)

    Constant -6.810*** -2.015 9.752*** 5.797***(-2.753) (-1.204) (5.947) (3.487)

    Observations 5,981 5,981 5,981 5,981

    Table 1:

    South Sumatra:

    Multinomial Outpatient Choices

    Basic Regressions

    z-statistics in parentheses

    *** p

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    17

    OutpatientChoices

    VARIABLES PrivateHospital PrivateDoctor

    /PolyclinicPUSKESM

    AS

    /PUSTUPrivate

    Health

    WorkerPoor Family

    Poor Family 0.758** 0.473* 0.981*** 0.914***(2.038) (1.814) (4.121) (3.529)

    2011 X Poor -1.143** -0.817*** -0.946*** -1.002***(-2.532) (-2.640) (-3.263) (-3.271)

    MotherMother -0.555 0.530 0.396 0.638

    (-0.494) (1.031) (0.817) (1.238)2011 X Mother -27.56 -0.567 -0.489 -0.170

    (-4.18e-05) (-0.874) (-0.788) (-0.264)Children

    under 5Age 5 and less 0.305 0.360 -0.00924 0.255

    (0.561) (1.067) (-0.0293) (0.746)2011 X Age 5 or less -0.329 -0.0940 0.171 0.497

    UrbanUrban -0.247 -0.383 -0.454* -2.138***

    (-0.573) (-1.403) (-1.814) (-6.753)2011 X urban 0.904* 0.952*** 0.521* 1.424***(1.798) (2.958) (1.711) (3.831)

    SumatraContext

    South Sumatra 0.0815 -0.0604 0.151 -0.221**(0.498) (-0.551) (1.533) (-2.031)

    2011 X South

    Sumatra0.126 0.389*** -0.155 0.415***

    (0.599) (2.780) (-1.182) (3.008)

    Table 2:

    South Sumatra Multinomial Choices of

    Outpatient Interactive Terms

    base: government hospital

    The poor family tends to use

    JAMSOSKESto the utmost.

    The coefficients of all choices are

    negative and significant which means

    there is a huge shift to government

    hospital for outpatient treatment

    Compared to Sumatra with no health

    care program; there is an increase of

    demand for private doctor/polyclinic.

    People go to private doctor to get good

    diagnosis before joining free health

    care despite having to pay fees.

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    18

    Inpatient ChoicesVARIABLES Private

    Hospital PUSKESMAS/PUSTU Private HealthWorkerAge 0.00415 -0.0203*** -0.00994

    (1.055) (-2.857) (-1.636)H. school and

    above 0.159 -0.730 -0.535

    (0.819) (-1.560) (-1.594)Household income 0.829*** -0.306 0.0862

    (5.568) (-1.072) (0.372)Year 2011 1.778 -8.952** 8.807***

    (1.010) (-2.126) (2.674)% road paved 0.000947 -0.0126** -0.0209***

    (0.233) (-2.090) (-4.074)Hilly region -0.0468*** -0.00575 -0.0143

    (-3.716) (-0.606) (-1.462)N. of hospital 0.695 9.733*** -1.419(0.596) (2.937) (-0.706)

    N. of polyclinic -0.449 -0.177 0.185(-0.693) (-0.130) (0.193)

    N. of puskesmas -0.948 -6.084*** -3.668***(-1.139) (-3.416) (-3.004)

    Dist. to hospital -0.0124 0.0203** 0.0266***(-1.457) (2.087) (3.393)

    Dist. to polyclinic 0.0114 -0.000942 -0.0402***(1.117) (-0.0858) (-3.194)

    Dist. to puskesmas 0.00868 -0.0189 -0.0381(0.411) (-0.758) (-1.042)

    Constant -12.12*** 4.321 -0.222(-5.548) (1.064) (-0.0667)

    Observations 778 778 778

    Table 3:

    South Sumatra: Multinomial

    Inpatient Choices Basic Regressions

    z-statistics in parentheses

    *** p

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    19

    Inpatient

    ChoicesVARIABLES Private

    Hospital PUSKESMAS/PUSTU PrivateHealthWorker/Poly

    Poor FamilyPoor Family 0.508 -0.139 0.360

    (1.192) (-0.233) (0.504)2011 X poor -0.521 0.155 -0.0660(-1.123) (0.221) (-0.0853)Mother

    Mother 0.923 0.993 0.810(0.954) (0.886) (0.538)

    2011 X mother -0.999 -33.40 -0.554(-0.904) (-4.78e-06) (-0.341)

    Children under

    5Age 5 and less -0.373 -0.478 -1.309

    (-0.562) (-0.669) (-1.013)2011 X age 5 0.849 -0.109 0.978

    (1.222) (-0.131) (0.739)Urban

    Urban 0.710 -2.174** 1.956**(1.481) (-2.225) (2.422)

    2011 X urban -0.545 0.458 -2.452***(-1.041) (0.365) (-2.735)Sumatra

    ContextSouth Sumatra 0.129 -0.0207 -0.272

    (0.724)

    (-0.0783)

    (-0.872)

    2011 X S. Sumatra 0.0524 -0.830** 0.230(0.256) (-2.511) (0.665)

    Table 4:

    South Sumatra: Multinomial Inpatient

    Choices Interacted Terms

    z-statistics in parentheses

    *** p

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    20

    (1) (2) (3) (4)VARIABLES Midwife Paramedic Dukun RelativeAge 0.0751** 0.352** 0.0859** 0.199*

    (2.328) (2.362) (2.293) (1.768)Household income -0.694*** -0.839** -1.268*** -1.074***

    (-8.565) (-2.122) (-12.73) (-3.389)Year 2011 -2.194* 15.70* -9.123*** -8.924

    (-1.752) (1.769) (-5.129) (-1.509)% road paved 0.00143 -0.0228** -0.000639 0.0103

    (0.628) (-2.487) (-0.253) (1.293)Hilly region 0.0133*** 0.0119 0.0173*** 0.0173**

    (3.181) (0.969) (3.949) (2.218)N. of hospital -1.322* -14.95*** -0.239 2.422

    (-1.873) (-2.824) (-0.238) (0.723)N.of maternity hosp. 0.976** 7.761* 1.140* -1.062

    (2.016) (1.775) (1.783) (-0.520)N. of puskesmas 1.208** -0.861 3.118*** 3.474*

    (2.479) (-0.233) (4.996) (1.651)N. of doctor -0.0400 0.559 -0.234* -1.558**

    (-0.395) (0.479) (-1.714) (-2.149)N. of midwife -0.135 -3.043*** -0.488*** 0.745

    (-1.199) (-3.199) (-3.519) (1.495)N. of polindes -0.122 -0.374 0.516** 0.497

    (-0.609) (-0.418) (2.287) (0.758)Dist. to hospital 0.00633 0.0319 0.0178*** 0.0285**

    (1.361) (1.515) (3.511) (2.398)Dist. to amaternity_hosp. 0.000412 -0.00323 0.00719 -0.00252

    (0.101) (-0.161) (1.610) (-0.229)Dist. to puskesmas 0.00831 -0.0196 -0.0133 -0.0268

    (0.609) (-0.376) (-0.936) (-0.870)Dist. to doctor 0.0178* -0.0800 0.0285*** 0.0176

    (1.810) (-1.614) (2.813) (0.860)Dist to midwife -0.0183 0.0808* -0.00110 0.0273

    (-1.540) (1.742) (-0.0902) (1.256)Dist. to polindes 0.00413 -0.0419 -0.00513 0.00547

    (1.499) (-1.506) (-1.632) (0.686)Constant 11.35*** 11.35** 17.56*** 9.600**

    (9.774) (2.055) (12.50) (2.168)Observations 6,577 6,577 6,577 6,577

    Table 5:South Sumatra: Multinomial Choices of

    Birth Helper Basic Regressions

    z-statistics in parentheses*** p

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    21

    (1) (2) (3) (4)VARIABLES Midwife Paramedi

    c Dukun Relative

    Poor

    FamilyPoor Family 0.523** 0.878 0.957*** 1.044*

    (2.365) (1.463) (4.051) (1.836)Year 2011 X Poor -0.420* 0.175 -0.779*** -1.258*

    (-1.706) (0.188) (-2.898) (-1.845)Urban

    Urban 0.330 1.549 -0.391 -2.258*(1.334) (1.416) (-1.394) (-1.761)

    Year 2011 X urban -0.475* -8.543*** -0.795** -1.050(-1.738) (-3.193) (-2.368) (-0.606)

    Sumatra

    ContextSouth Sumatra 0.0280 0.322 0.0778 -1.442***

    (0.324) (1.210) (0.802) (-5.340)Year 2011 X South

    Sumatra -0.01000 -0.881** -0.0519 0.544(-0.0968) (-2.000) (-0.437) (1.640)

    Table 6:South Sumatra: Multinomial Choices of

    Birth Helper Interacted Terms

    z-statistics in parentheses*** p

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    22

    (1) (2) (3) (4)VARIABLES Days of illness Days of illness Days of illness Days of illness

    Age 0.00276*** 0.00427*** 0.00290*** 0.00276***(11.40) (18.02) (17.07) (11.37)

    Marriage -0.0285*** -0.0195** -0.0292***(-3.453) (-2.330) (-3.583)

    High school -0.0687*** -0.0471*** -0.0643*** -0.0694***(-9.442) (-6.327) (-8.654) (-9.565)

    Household

    income 0.0390*** 0.0330*** 0.0326*** 0.0348***(4.082) (3.628) (3.652) (4.170)

    Year 2011 0.536*** 0.536*** 0.532*** 0.552**(3.072) (3.050) (2.988) (2.296)

    Poor Family 0.0500***(2.863)

    2011 X poor -0.0245(-1.290)Age 5 and less 0.286***

    (13.90)2011 X age 5 -0.0609***

    (-0.636)Mother 0.238***

    (11.32)2011 X mother -0.0468**

    (-2.112)Urban -0.0337

    (-0.808)2011 X urban -0.000171

    (-0.00392)Geo-topography Yes Yes Yes Yes

    Facility

    availability Yes Yes Yes

    Distance to

    facility Yes Yes Yes Yes

    Observations 73,171 73,171 73,171 73,171Wald-Chisq 365.68*** 1008.31*** 267.16*** 346.37***

    Table 7:

    South Sumatra: Probability of Being

    Sick

    Impact ofJAMSOSKES is reducing the

    probability of being sick for all cases

    considered.

    The probability of being sick is

    related positively with age.

    While higher education attainment

    tends to reduce the probability ofsickness.

    But high household apparently does

    not prevent someone from being sick.

    (1) (2) (3) (4)

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    23

    (1) (2) (3) (4)VARIABLES Days of illness Days of illness Days of illness Days of illness

    Age 0.00943*** 0.0104*** 0.00922*** 0.00942***(14.02) (14.81) (14.13) (13.91)

    Marriage -0.0736** -0.0548* -0.0727**(-2.423) (-1.741) (-2.374)

    High school -0.0426 -0.0207 -0.0433 -0.0441(-0.873) (-0.419) (-0.897) (-0.885)

    ln_HH expenditure -0.0436 -0.0375 -0.0393 -0.0377(-1.404) (-1.273) (-1.327) (-1.308)

    Year 2011 -0.407 -0.358 -0.396 -0.590(-1.031) (-0.929) (-1.018) (-1.450)

    Poor Family -0.0589 -0.329(-1.034) (-0.919)

    2011 X poor 0.0643(0.987)

    Age 5 and less 0.174***(3.100)

    2011 X age 5

    -0.0396

    (-0.636)Mother 0.00165

    (0.0195)2011 X mother -0.000714

    (-0.749)Urban -0.0436

    (-0.474)2011 X urban 0.0735

    (0.732)Geo-topography Yes Yes Yes Yes

    Facility availability Yes Yes Yes YesDistance to facility Yes Yes Yes Yes

    Constant 2.145*** 1.971*** 2.238*** 2.056***(4.955) (4.804) (5.550) (5.073)

    Observations 9,248 9,248 9,248 9,248Wald-Chisq 269.69*** 305.88*** 267.16*** 246.00***

    Table 8:

    Poisson Regression: South Sumatra

    Impacts on Days of Illness

    Older people seem to sufferlonger than younger when they

    get ill.

    It suggests that marriage people

    tend to have fewer days of

    illness

    None of the interactive terms is

    significant suggesting that the

    sickness of this type does not

    prevent one from continuing to

    work.