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Working Paper 332 - The Impacts of Community-Based Health Insurance on Poverty Reduction

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Abstract

Every year, millions of people suffer from financial catastrophe due to out-of-pocket healthcare payments and most of them are pushed into poverty. This study investigates the impacts of community-based health insurance schemes on health-related financial shocks and poverty, using a nationally representative household survey data from Rwanda. We address issues of selection bias in health insurance enrollment, heterogeneity in treatment effects and non-normality in the outcome variables using Extended Two-Part Model within a Bayesian estimation framework. We find that community-based health insurance schemes reduce the incidence of catastrophic healthcare spending by about 20 percentage points. We also finding that community-based health insurance schemes reduce the headcount poverty rates and the poverty gap due to out-of-pocket healthcare payments by about 8 percentage points and by about 3 USD in 2000 prices, respectively. The estimated treatment effects are however heterogeneous across households.

Suggested Citation

  • Andinet Woldemichael, 2020. "Working Paper 332 - The Impacts of Community-Based Health Insurance on Poverty Reduction," Working Paper Series 2458, African Development Bank.
    • Handle: RePEc:adb:adbwps:2458
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    Cited by:

    1. Koloma, Yaya, 2021. "Impact of Mutual Health Insurance on Urban Households Health Expenses and Vulnerability in Burkina Faso," EconStor Preprints 234465, ZBW - Leibniz Information Centre for Economics.

    More about this item

    Keywords

    impact; selection bias; endogeneity; health insurance; low-income; community-based JEL Classification: C21; C11; D04; I13; I15;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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