Estimating the Willingness to Pay for Community Healthcare Insurance in Rural Nigeria
41 Pages Posted: 10 Sep 2008 Last revised: 12 May 2014
Date Written: September 10, 2008
Health care financing in Nigeria is dominated by private out-of-pocket payment that is not affordable to the poor. This has greatly reduced access to quality health care for the predominantly rural poor. Insurance schemes as options for increasing access to health care services have not received considerable attention in Nigeria. In this regard, a community health prepayment scheme is proposed, and the Contingent Valuation Method is used to investigate the willingness of rural households to pay for this scheme. Contributing through agricultural commodities produced statistically higher estimates than through direct cash. Also, by incorporating uncertainty in responses using the Random Valuation Model, higher contribution amounts were obtained. This provides an option for its use in healthcare contingent valuation studies where respondents are uncertain about their true responses. The groups that are willing to pay lesser amounts into the scheme as compared with their counterparts are women, the less educated, and the less wealthy households.
Keywords: Health care financing, Prepayment scheme, Contingent Valuation, Willingness to pay, Dichotomous choice, Uncertainty, Random valuation, Stochastic Payment Card
JEL Classification: C35, D81, I10, I38
Suggested Citation: Suggested Citation