Does community-based health insurance affect lifestyle and timing of treatment seeking behavior? Evidence from Ethiopia

There has been a growing concern about the financial sustainability of community-based health insurance (CBHI) schemes in developing countries recently. However, little empirical studies have been conducted to identify potential contributors including ex-ante and ex-post moral hazards. We respond to this concern by investigating the effects of being insured on household lifestyle -Preventive Care- and the timing of treatment seeking behavior in the context of Ethiopia’s CBHI scheme. Using three rounds of household panel data and a fixed-effects household model, we do not find a significant impact on preventive care activities. However, we find that participation in CBHI increases delay in treatment-seeking behavior for malaria, tetanus, and tuberculosis symptoms. This behavior is costly for the insurer. Therefore, it is essential to identify the primary causes of delays in seeking medical services and implement appropriate interventions aimed at encouraging insured individuals to seek early medical attention when signs of diseases emerge.