The article focuses on the effects of subsidized health insurance on newborn health in a developing country. Establishing causal relationships in a developing country context is important from a policy perspective because these governments have fewer resources to finance subsidized health insurance. The institutional environment of the article is particular to the Colombian reform, and the findings may not be applicable to countries with more limited health insurance coverage. The SR provides a package of health services for pregnant women, including prenatal care, delivery care, cesarean delivery, and special care for women with high-risk pregnancies. It also provides a package of medicines, vitamins, and nutritional supplements. In addition, the insurance agencies are required to have prevention campaigns for illnesses related to pregnancy and delivery, which include early detection of pregnancy and risk assessment; blood and urine tests; detection and prevention of physical, psychological, and sexual abuse; vaccines; and information on the effects of alcohol, drugs, and tobacco during pregnancy.