Preliminary working draft As you sow , so you reap ! Assessing a Mandatory Employer-Sponsored Health Insurance Scheme

In this study, we evaluate a mandatory employer-sponsored health insurance scheme. The scheme was offered and managed by a large not-for-profit employer, which acts as supplier for one of the leading local brands in Bangladesh. The scheme provided limited coverage for primarily in-patient hospitalization care to the existing regular female employees. The scheme is largely covered by the premium paid equally by the workers and the employer. The randomized evaluation reveals only a modest out-of pocket saving. However, we find significant changes in health seeking behaviors that are consistent with the designs of the scheme. The evaluation suggests a higher coverage that may allow significant OOP savings and policymakers also need to consider the behavioral change caused by participating in health insurance scheme.