Willingness to Pay for Health Insurance Among Rural and Poor Persons: Field Evidence from Seven Micro Health Insurance Units in India

Health Policy, Vol. 82, No. 1, 2007

16 Pages Posted: 26 Sep 2007  

David M. Dror

Micro Insurance Academy (MIA); Erasmus University Rotterdam - Institute of Health Policy & Management

Ralf Radermacher

Micro Insurance Academy e.V.

Ruth Koren

Tel Aviv University - Professor Sackler Faculty of Medicine

Abstract

This study, conducted in India in 2005, provides evidence on Willingness to pay (WTP), gathered through a unidirectional (descending) bidding game among 3024 households (HH) in seven locations where micro health insurance units are in operation. Insured persons reported slightly higher WTP values than uninsured. About two-thirds of the sample agreed to pay at least 1%; about half the sample was willing to pay at least 1.35%; 30% was willing to pay about 2.0% of annual HH income as health insurance premium. Nominal WTP correlates positively with income but relative WTP (expressed as percent of HH income) correlates negatively. The correlation between WTP and education is secondary to that of WTP with HH income. Household composition did not affect WTP. However, HHs that experienced a high-cost health event and male respondents reported slightly higher WTP. The observed nominal levels of WTP are higher than has been estimated hitherto.

Keywords: micro health insurance, social insurance, insurance for the poor, community based health insurance, health financing, willingness-to-pay

Suggested Citation

Dror, David M. and Radermacher, Ralf and Koren, Ruth, Willingness to Pay for Health Insurance Among Rural and Poor Persons: Field Evidence from Seven Micro Health Insurance Units in India. Health Policy, Vol. 82, No. 1, 2007. Available at SSRN: https://ssrn.com/abstract=1017105

David M. Dror (Contact Author)

Micro Insurance Academy (MIA) ( email )

86 Okhla Industrial Estate Phase III
New Delhi, NCR 110 020
India
+91 11 4379 9100 (Phone)
+91 (11) 4379 9117 (Fax)

HOME PAGE: http://www.microinsuranceacademy.org

Erasmus University Rotterdam - Institute of Health Policy & Management ( email )

Woudestein Campus
Rotterdam, 3000 DR
Netherlands

HOME PAGE: http://www.daviddror.info

Ralf Radermacher

Micro Insurance Academy e.V. ( email )

Colmantstr. 5
Bonn, 53115
Germany

Ruth Koren

Tel Aviv University - Professor Sackler Faculty of Medicine ( email )

Ramat Aviv
Tel-Aviv, 6997801
Israel

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