Health risk and insurance: Impact of ethiopia's community based health insurance on household economic welfare
World Bank Economic Review
International Institute of Social Studies, Erasmus University Rotterdam, Netherlands; Crawford School of Public Policy, Australian National University, Australia; African Studies Centre, Leiden University, Netherlands; Addis Ababa University, Ethiopia; International Institute of Social Studies, Erasmus University Rotterdam, School of Foreign Service-Qatar, Georgetown University, Netherlands
In 2011, in an attempt to increase access to health care and reduce household vulnerability to out-of-pocket health expenditure, the Government of Ethiopia launched a Community- Based Health Insurance Scheme (CBHI). This paper uses three rounds of household survey data, collected before and after the introduction of the CBHI pilot, to assess the impact of the scheme on household consumption, income, indebtedness, and livestock holdings.We find that enrollment leads to a 5 percentage point-or 13%-decline in the probability of borrowing and is associated with an increase in household income. There is no evidence that enrolling in the scheme affects consumption or livestock holdings. Our results show that the scheme reduces reliance on potentially harmful coping responses such as borrowing. This paper adds to the relatively small body of work that rigorously evaluates the impact of CBHI schemes on economic welfare. © The Author 2015.
health care; health insurance; health risk; household income; welfare economics; Ethiopia