Demystifying Micro Health Insurance Package Design - Choosing Healthplans All Together (Chat)

Microfinance Insights, Vol. 4, pp.17-19, September 2007

3 Pages Posted: 1 Jul 2008

Date Written: September 1, 2007

Abstract

This article examines the utilization of a simulation exercise known as Choosing All Health Insurance (CHAT). As a decision tool, this exercise allows variably educated resource-poor populations who are inexperienced with health insurance to select health benefits that they perceive to be relevant. CHAT was adapted to developmental context of India through the project "Strengthening Micro Health Insurance Units for the Poor" (2005-2006). The primary beneficiaries of this exercise were poor communities at the "bottom of the pyramid" given that such populations previously lacked an accessible mechanism to engage in the rationing of health benefits. The need for such a mechanism arose from the gap between benefit packages available on the market (from both private and public insurers) and those reflecting the priorities of the poor. Using a sample population of some 200,000 persons, the aforementioned study proposed a premium of INR 500 (about 10 Euros) per household per year, derived from actuarial calculations of local prices and willingness to pay. Group decisions were reached by consensus, reflecting the Indian cultural setting. A subsequent survey of participants indicated high levels of satisfaction with the overall CHAT process and resultant health insurance packages.

Keywords: India, microinsurance

JEL Classification: D10, D20, G22, I19, O17

Suggested Citation

Dror, Iddo, Demystifying Micro Health Insurance Package Design - Choosing Healthplans All Together (Chat) (September 1, 2007). Microfinance Insights, Vol. 4, pp.17-19, September 2007. Available at SSRN: https://ssrn.com/abstract=1153906

Iddo Dror (Contact Author)

Micro Insurance Academy ( email )

52-B, 1st floor
Okhla Industrial Estate, Phase III
New Delhi, 110020
India

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