ABSTRACT
BACKGROUND: This study analyzes the effects of the individual's health behavior on the health and the medical demand for the management of health and medical expenses. METHODS: This study uses the Korea Health Panel Survey data from 2010 to 2015. We utilize the panel ordered logit model and the panel Tobit model with the subjective health status and the medical expenses as the dependent variables. RESULTS: Chronic diseases would cause the deterioration of his or her health and the increase in medical expenses. Smoking and drinking alcohol would deteriorate one's health. The total amount of cigarettes increases medical expenses. Exercises could make people healthier, whereas excessive exercise might increase medical expenses. Private health insurance would increase medical expenses. CONCLUSION: Since health could reduce the medical expenses, people should promote one's health by changing one's behavior for health.