Effects of Public Health Insurance on Households Nutritional Choices

Abstract

This study investigates the impact of public health insurance, specifically the Seguro Popular program in rural Mexico, on household dietary choices. I analyze changes in nutritional consumption resulting from access to health services through a subsidized insurance program. Utilizing household-level data and employing quantitative methods (Seemingly Unrelated Regression Equations and Difference-in-Differences Estimation), this study reveals a significant reallocation of resources within food expenditure, with beneficiaries dedicating more funds to unhealthy foods. Despite challenges in rural household decision-making complexity, this research contributes valuable insights to the relationship between health insurance, expenditure patterns, and dietary preferences, emphasizing the need for tailored analyses in specific rural sociocultural contexts. The findings suggest an unintended consequence of public health insurance programs, potentially exacerbating nutritional deterioration and undermining the core objectives of initiatives like Seguro Popular. The case study of Mexico, with its historical exclusion from formal health systems, persistent poverty rates, and high prevalence of malnutrition, offers valuable insights into the multifaceted challenges vulnerable populations face. The research underscores the necessity of continuous adaptation in policy design, considering sociodemographic, economic, and geographic dynamics shaping household decision-making. This study highlights the complexities of rural household decision-making, emphasizing the importance of household composition and the role of household dynamics in future research. The substantive implications extend to the design and recalibration of public health policies in Mexico and beyond, urging comprehensive strategies beyond coverage provision to mitigate potential adverse dietary shifts affecting household well-being and health. Findings provide insights into the differential effects of the econometric models on various food categories, shedding light on the nuances of their influence in different contexts. Model specifications under SUR and Diff-in-Diff estimations show positive impacts on consuming processed sugars, oil, and fats and a negative effect on consuming fruits and vegetables.