Does Health Insurance Reduce the Alcohol Consumption? Evidence from China Health and Nutrition Survey

Abstract

Whether health insurance reduces alcohol consumption has been debated. To identify it, the authors used three-wave balance panel data from China Health and Nutrition Survey and applied a two-way fixed-effect model. The authors found that (1) health insurance reduces alcohol consumption, (2) the effect would be deducted when they have been diagnosed with diabetes, (3) the heterogeneity existed between old and young individuals as well as rural and urban areas, those old individuals would behave more cautious, and urban individuals would consume more alcohol. This study identified the effects of health insurance and the moderating effect of diabetes, which were helpful for policymakers to optimize health insurance policy to ensure the sustainability of health insurance and suggested that primary medical staff should assist patients to establish healthy living habits and reduce their risky behaviors.