Anushka Chawla : anushka.chawla[at]univ-amu.fr
Laura Sénécal : laura.senecal[at]univ-amu.fr
Carolina Ulloa Suarez : carolina.ulloa-suarez[at]univ-amu.fr
In France, the scope of the compulsory health insurance (NHI) coverage is restricted; therefore, voluntary subscription to complementary health insurance (CHI) may be required to increase the coverage of individual health care expenses. This empirical work focuses on the link between the choice of CHI level and healthcare consumption. It examines on the one hand the determinants of individual choices associated with a better or worse coverage and on the other, conditionally to these choices, it estimates the level of health care consumption. The potential endogeneity of the chosen level of coverage with the unobserved health status potentially explaining health care expenses is addressed with the help of endogenous switching regression models. The empirical analysis is based on cross-sectional data (2017) from 75,000 individuals insured by one of the main French CHI providers (MGEN). In addition to the standard result regarding the close association of high healthcare expenses with high CHI coverage, our results indicate that there may exist a dissymmetric self-selection effect, significant when the switch of coverage is upwards but non-significant when the switch is downwards. It emphasizes also that high healthcare consumption is closely associated with high CHI coverage.