Universal health insurance and health behavior: Evidence from the elderly in Taiwan

This study investigates the effect of universal health insurance on the health behavior of the elderly in Taiwan. Using a difference-in-differences approach, I show that universal health insurance does not lead to ex-ante moral hazard for elderly Taiwanese men or women. Instead, it reduces certain risky health behaviors among elderly women, such as drinking and smoking. Moreover, it reduces the likelihood of engaging in more than two risky behaviors. The effect varies significantly across health behaviors by education level and insurance type. My findings suggest that universal health insurance has potentially beneficial impacts on risky health behaviors, such as drinking and smoking, among elderly Taiwanese women, which may be important for policymakers in other countries and territories.