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Willingness to Pay for Community Based Health Insurance among Households in the Rural Community of Fogera District, North West Ethiopia

Received: 19 August 2014     Accepted: 4 September 2014     Published: 20 September 2014
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Abstract

Introduction: Community-based health insurance schemes are becoming increasingly recognized as a tool to finance health care in developing countries. The Ethiopian government is now implementing community-based health insurance for citizens in the informal and agriculture sectors as a pilot basis. Objective: This study was conducted to assess the willingness to pay for community based health insurance and associated factors among household heads in the rural community of Fogera district, North West Ethiopia, 2013. Methods: A community based cross-sectional study was conducted. Multistage sampling technique was undertaken to get a total of 528 households. Pre-tested, structured interviewer administered questionnaire was used to collect the desired data. Double-Bounded Dichotomous Choice Variant of the contingent valuation method was used to assess the maximum willingness to pay for the schemes, and a multiple linear regression equation model was used to answer how much one is willing to pay once one decides to enroll in the scheme. The degree of association between independent and dependent variables were assessed using coefficient and p-value. Results: The study revealed that, 80% of respondents expressed willingness to enroll in the community-based health insurance system. The average amount of money willing to pay for the scheme was 187.4Birr per household per annual. Based on the multiple linear regression model; being male [B=17.28], large household size [B= 4.54], schooling experience [B=1.85], farmer household [B=33.79], merchant household [B=58.50], richer household [B=14.94] were significantly associated with the willingness to pay for community based health insurance scheme. Conclusion and recommendation the willingness to pay for the Community-based health insurance scheme was encouraging. However, the amount of the premium should consider the family size, wealth status and the willingness of the households.

Published in International Journal of Economics, Finance and Management Sciences (Volume 2, Issue 4)
DOI 10.11648/j.ijefm.20140204.15
Page(s) 263-269
Creative Commons

This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2014. Published by Science Publishing Group

Keywords

Willingness, Community Based Health Insurance, Rural, Households, Fogera

References
[1] Oriakhi.H, Onemolease.E. Determinants of Rural Household’s Willingness to Participate in Community Based Health Insurance Scheme in Edo State, Nigeria. 2012:97-100.
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[5] Ahuja, Rajeev, Jutting J. "Are the poor too poor to demand health insurance?" Microfinance. 2009;6(1):3-5.
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[10] shemeles A. community based health insurance scheme in Africa, the case of Rwanda, working paper. Africa development bank. 2012 (120):13-7.
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[12] Federal Democratic Republic of Ethiopia Ministry of Health , HSDP IV. 2010.
[13] D. M. Dror, and RR, Koren R. Willingness to pay for health insurance among rural and poor persons: Field evidence from seven micro health insurance units in India, Health Policy. 2006;82:4-12.
[14] Shafie, A A Hassali, A M. Willingness to pay for voluntary community-based health insurance: Findings from an exploratory study in the state of Penang, Malaysia, Social science & medicine. 2013.
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[18] A. Asfaw, Gustafsson-Wright E, VanderGaag J. Willingness to pay for health insurance: An analysis of the potential market for new low-cost health insurance products in Namibia. Amsterdam Institute for International Development 2008:1-22.
[19] Onwujekwe.O, Okereke .E, Onoka .C,et.al. Willingness to pay for community-based health insurance in Nigeria: Do economic status and place of residence matter? Health Policy Plan. 2010;25(2):155-61.
[20] Asgary.A, Willis.K, Taghvaei A, Rafeian M. Estimating rural households’ willingness to pay for health insurance. European Journal of Health Economics. 2004;5:581-7.
Cite This Article
  • APA Style

    Adane Kebede, Measho Gebreslassie, Mezgebu Yitayal. (2014). Willingness to Pay for Community Based Health Insurance among Households in the Rural Community of Fogera District, North West Ethiopia. International Journal of Economics, Finance and Management Sciences, 2(4), 263-269. https://doi.org/10.11648/j.ijefm.20140204.15

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    ACS Style

    Adane Kebede; Measho Gebreslassie; Mezgebu Yitayal. Willingness to Pay for Community Based Health Insurance among Households in the Rural Community of Fogera District, North West Ethiopia. Int. J. Econ. Finance Manag. Sci. 2014, 2(4), 263-269. doi: 10.11648/j.ijefm.20140204.15

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    AMA Style

    Adane Kebede, Measho Gebreslassie, Mezgebu Yitayal. Willingness to Pay for Community Based Health Insurance among Households in the Rural Community of Fogera District, North West Ethiopia. Int J Econ Finance Manag Sci. 2014;2(4):263-269. doi: 10.11648/j.ijefm.20140204.15

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  • @article{10.11648/j.ijefm.20140204.15,
      author = {Adane Kebede and Measho Gebreslassie and Mezgebu Yitayal},
      title = {Willingness to Pay for Community Based Health Insurance among Households in the Rural Community of Fogera District, North West Ethiopia},
      journal = {International Journal of Economics, Finance and Management Sciences},
      volume = {2},
      number = {4},
      pages = {263-269},
      doi = {10.11648/j.ijefm.20140204.15},
      url = {https://doi.org/10.11648/j.ijefm.20140204.15},
      eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijefm.20140204.15},
      abstract = {Introduction: Community-based health insurance schemes are becoming increasingly recognized as a tool to finance health care in developing countries. The Ethiopian government is now implementing community-based health insurance for citizens in the informal and agriculture sectors as a pilot basis. Objective: This study was conducted to assess the willingness to pay for community based health insurance and associated factors among household heads in the rural community of Fogera district, North West Ethiopia, 2013. Methods: A community based cross-sectional study was conducted. Multistage sampling technique was undertaken to get a total of 528 households. Pre-tested, structured interviewer administered questionnaire was used to collect the desired data. Double-Bounded Dichotomous Choice Variant of the contingent valuation method was used to assess the maximum willingness to pay for the schemes, and a multiple linear regression equation model was used to answer how much one is willing to pay once one decides to enroll in the scheme. The degree of association between independent and dependent variables were assessed using coefficient and p-value. Results: The study revealed that, 80% of respondents expressed willingness to enroll in the community-based health insurance system. The average amount of money willing to pay for the scheme was 187.4Birr per household per annual. Based on the multiple linear regression model; being male [B=17.28], large household size [B= 4.54], schooling experience [B=1.85], farmer household [B=33.79], merchant household [B=58.50], richer household [B=14.94] were significantly associated with the willingness to pay for community based health insurance scheme. Conclusion and recommendation the willingness to pay for the Community-based health insurance scheme was encouraging. However, the amount of the premium should consider the family size, wealth status and the willingness of the households.},
     year = {2014}
    }
    

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  • TY  - JOUR
    T1  - Willingness to Pay for Community Based Health Insurance among Households in the Rural Community of Fogera District, North West Ethiopia
    AU  - Adane Kebede
    AU  - Measho Gebreslassie
    AU  - Mezgebu Yitayal
    Y1  - 2014/09/20
    PY  - 2014
    N1  - https://doi.org/10.11648/j.ijefm.20140204.15
    DO  - 10.11648/j.ijefm.20140204.15
    T2  - International Journal of Economics, Finance and Management Sciences
    JF  - International Journal of Economics, Finance and Management Sciences
    JO  - International Journal of Economics, Finance and Management Sciences
    SP  - 263
    EP  - 269
    PB  - Science Publishing Group
    SN  - 2326-9561
    UR  - https://doi.org/10.11648/j.ijefm.20140204.15
    AB  - Introduction: Community-based health insurance schemes are becoming increasingly recognized as a tool to finance health care in developing countries. The Ethiopian government is now implementing community-based health insurance for citizens in the informal and agriculture sectors as a pilot basis. Objective: This study was conducted to assess the willingness to pay for community based health insurance and associated factors among household heads in the rural community of Fogera district, North West Ethiopia, 2013. Methods: A community based cross-sectional study was conducted. Multistage sampling technique was undertaken to get a total of 528 households. Pre-tested, structured interviewer administered questionnaire was used to collect the desired data. Double-Bounded Dichotomous Choice Variant of the contingent valuation method was used to assess the maximum willingness to pay for the schemes, and a multiple linear regression equation model was used to answer how much one is willing to pay once one decides to enroll in the scheme. The degree of association between independent and dependent variables were assessed using coefficient and p-value. Results: The study revealed that, 80% of respondents expressed willingness to enroll in the community-based health insurance system. The average amount of money willing to pay for the scheme was 187.4Birr per household per annual. Based on the multiple linear regression model; being male [B=17.28], large household size [B= 4.54], schooling experience [B=1.85], farmer household [B=33.79], merchant household [B=58.50], richer household [B=14.94] were significantly associated with the willingness to pay for community based health insurance scheme. Conclusion and recommendation the willingness to pay for the Community-based health insurance scheme was encouraging. However, the amount of the premium should consider the family size, wealth status and the willingness of the households.
    VL  - 2
    IS  - 4
    ER  - 

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Author Information
  • Department of Health Service Management and Health Economics, Institute of Public Health, College of Medicine and Health Sciences, University of Gondar, Ethiopia

  • Department of Health Service Management and Health Economics, Institute of Public Health, College of Medicine and Health Sciences, University of Gondar, Ethiopia

  • Department of Health Service Management and Health Economics, Institute of Public Health, College of Medicine and Health Sciences, University of Gondar, Ethiopia

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