WILLINGNESS TO PAY FOR HEALTH INSURANCE AMONG INFORMAL SECTOR PRACTITIONERS
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- NGN 3000
Abstract
Out-of-pocket payment dominates the bulk of health care financing in Osun State as in other parts of Nigeria. Pre-payment plans which have been identified to turn the unexpected health expenditures into predictable form of payments have not received desirable consideration. Given the importance of such prepayment scheme, the aim of this study is to assess willingness to pay for community based health care financing scheme among rural and urban households in Osun State. This is a descriptive, cross-sectional comparative study of willingness to pay for community based health care financing schemes among 450 urban and an equal number of rural households in Osun State using multistage sampling method. Research instruments were pre-coded, pre-tested semi structured interviewer administered questionnaire. Data were analysed using STATA 10 software. The findings from this research showed that rural household heads 373 (82.8%) were more willing to pay for community based health care financing scheme than the urban household heads 232 (51.6%). Premium Urban households were willing to pay ₦1798.90k per year while rural ones were willing to pay ₦ 721.70k.
Major factors identified that contribute to willingness to pay in the households are number in the households, level of education, income, distance to the health centers, marital status, age and Male gender. Women, the poor, and people with low level of education were less willing to pay. Therefore, when establishing community based health scheme there should be selective targeting of the vulnerable groups within the communities due to their inability to finance health care payments.
The results of this research strongly suggest that contingent valuation surveys are feasible methods for estimating households’willingness to pay for community based health care financing scheme in Osun State.
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