Source: VoxEU

The value of free health insurance: Evidence from Mexico’s Seguro Popular

Expanding free health insurance is central to universal health coverage, but its impact depends on how households value it. This column examines Mexico’s Seguro Popular and shows that households value the programme less than its fiscal cost. This helps explain why its effects on labour markets were modest and suggests that overall welfare gains may be smaller than often assumed, despite the programme’s large expansion in coverage.