Keywords

microinsurance, health insurance, vulnerability to poverty

Abstract

Health microinsurance (HMI) offers a promising way to mitigate the risks of disease and ill health, which are disproportionately borne by the world’s poorest citizens. Despite that HMI is a relatively new phenomenon, recent figures indicate that approximately 40 million people worldwide have some form of HMI coverage, principally in India.

The emergence of HMI programmes worldwide provides hope that the poor will receive, at a minimum, a reliable, adequate level of access to affordable healthcare. Research shows that access to HMI reduces out-of-pocket health expenses, especially for catastrophic health events, and improves access to quality health care for those who are insured. There is also evidence that HMI stimulates important health seeking behaviours such as the use of mosquito nets and receipt of malaria treatment earlier in the disease cycle. Nevertheless, little is known about the impact of HMI on health outcomes and household well-being, especially when it concerns the poorest individuals who tend to be excluded from HMI programmes and who generally receive a lower quality of care. There is still scope to expand member benefits in HMI. In so doing, low-income individuals can be better enabled to access medically necessary care at the appropriate time, thus reducing financial catastrophe and promoting economic productivity and efficient use of resources.

HMI is one of many potential healthcare financing options for the poor. Other options range from out-ofpocket spending or credit to government-sponsored partial or universal access to healthcare services. Research indicates that 26% of households in low and middle-income countries resort to borrowing and selling assets to cover healthcare expenses, suggesting that there is a huge gap in health care financing. Although health care is increasingly perceived as a human right and a public good, the reality is one of resource constraints that slows the deployment and scale-up of national healthcare financing. In these cases, HMI can be a possible alternative; hybrid strategies that combine private sector led HMI with the strengths of the public sector also promise to push frontiers in healthcare financing for the poor.

Despite the positive indicators and potential of HMI, there are many challenges that limit the growth and impact of the sector. This briefing note, based on a longer thematic study that included a literature review of 68 documents covering the period from 1999 to 2010 and expert interviews with more than 31 experts representing 25 organizations, discusses these challenges and focuses on private sector HMI. In addition to identifying barriers to success, this note presents innovations that may move the field forward, including collaboration with public programmes.

Original Publication Citation

Leatherman, S., Jones Christensen, L., & Holtz, J. (2010). Innovations in health microinsurance. Matul, M. (Ed.) Protecting the poor: a microinsurance compendium. Geneva, ILO and Munich Re Foundation.

Document Type

Book Chapter

Publication Date

2010

Publisher

Protecting the poor: a microinsurance compendium

Language

English

College

Marriott School of Business

Department

Marketing

University Standing at Time of Publication

Full Professor

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