A Study on the Feasibility of Health Insurance Schemes For Community Based Groups’ In Addis Ababa City: A Case Study On Iddirs’.

Course ID
Ethiopian Economics Association (EEA)
Israel Fekade

This Study Analyses The Feasibility Of Cbhis Provision For A Community Based Organizations Called Iddirs By Determining The Member Households’ Willingness To Pay For The Proposed Scheme. Three Iddirs Are Purposively Selected From Areas That Are Believed To Constitute Largely Of The Low Income Earning And Also Informally Employed Groups Of The Society In The Capital City, Addis Ababa. From The Three Iddirs 210 Households Were Systematically Sampled For An Interview. A Closed Ended Wta Question Followed By An Open Ended Wtp Question Under Hypothetical Cbhis Was Presented For The Respondents To Elicit Their Maximum Willingness To Pay Amounts. The Value Member Households ‘Attach To The Proposed Health Insurance Is Estimated Using The Contingent Valuation Method (Cvm).
The Results Show That The Mean Willingness To Pay Amount For The Open Ended Question Under The Proposed Cbhis Scheme Is 11.56 Birr Per Month. This Amount Of Wtp Even From The Low Income Earning Groups Of The Society Shows That Cbhis Can Help To Generate Sufficient Amount Of Resource That Can Finance The Deficit Of The Health Sector Of The Country Without Evicting The Poor And Those Informally Employed Section Of The Population From The Health Care Market. According To The Results From The Tobit Model Income, Secondary And Tertiary Education Dummies, Status Of The Respondent In The Household, Case Of Chronic Disease In The Household, Occupation Of The Head And Size Of The Household Have A Positive And Significant Effect On The Amount Of Wtp. The Probit Model Shows That Age, Marital Status, Respondents Status, Income Of The Household, Health Care Need, Size Of The Household And Occupation Of The Head (All Of Them With A Positive Sign) And The Bid Price With A Negative Sign, Have A Significant Effect On The Probability Of Accepting The Bid. The Setting Of Premium Prices Should Consider The Ability Of Payment And The Willingness To Pay Of Households So As To Assure The Sustainable Provision Of The Scheme. Public Awareness Should Be Adequately Enhanced On The Functioning Of The Schemes And Also The Benefits That Can Be Gained From It So That The Service Can Insure A Wider Coverage

Corporate Author:Getnet Alemu & Worku Gebeyehu (Editor) & Ethiopian Economic Association/Ethiopian Economic Policy Research Institute
Publisher:Ethiopian Economic Association (EEA)
Primary Descriptors:Contracts

Secondary Descriptor:Health Insurance

Geographic Descriptors:Ethiopia
Cataloge Date:02/27/2013
Broad Subject heading:Commercial Contracts
Call Number:330.963 PRO 2012
Serial Key Title:Proceedings of the Ninth International Conference on the Ethiopian Economy
Publication catagory:International Conference
Content type:EEA Publication
Publication date:2013-06-27 23:12:00
Forum or Discussion date:2013-02-27 15:43:28
Place of publication:Addis Ababa, Ethiopia
Type of material:Book
Current frequency:Annualy
Author: Israel Fekade

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