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The Financial Risk Reduction Provided by Ghana’s National Health Insurance Scheme

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  • Raju,Dhushyanth
  • Younger,Stephen D.

Abstract

This paper estimates the monetary value of financial risk reduction associated with membershipin Ghana’s National Health Insurance Scheme, based on recent national household survey data. The paper compares the riskpremiums for distributions of out-of-pocket healthcare expenditures with and without insurance and find that thedifference is small. This does not mean that the National Health Insurance Scheme has no value to members. Indeed, thefindings show that the insured pay significantly less for healthcare than the uninsured on average. But that averagereduction does not translate into a reduced spread of consumption net of out-of-pocket healthcare expenditures.Thus, the benefit of the National Health Insurance Scheme is entirely a transfer benefit, not a reduction in financial risk.

Suggested Citation

  • Raju,Dhushyanth & Younger,Stephen D., 2022. "The Financial Risk Reduction Provided by Ghana’s National Health Insurance Scheme," Policy Research Working Paper Series 10073, The World Bank.
    • Handle: RePEc:wbk:wbrwps:10073
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    References listed on IDEAS

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    1. Powell-Jackson, Timothy & Hanson, Kara & Whitty, Christopher J.M. & Ansah, Evelyn K., 2014. "Who benefits from free healthcare? Evidence from a randomized experiment in Ghana," Journal of Development Economics, Elsevier, vol. 107(C), pages 305-319.
    2. Coulombe, Harold & Wodon, Quentin, 2012. "Benefit incidence of public health spending for public and faith-inspired health facilities in Ghana," MPRA Paper 45390, University Library of Munich, Germany.
    3. Hitoshi Shigeoka, 2014. "The Effect of Patient Cost Sharing on Utilization, Health, and Risk Protection," American Economic Review, American Economic Association, vol. 104(7), pages 2152-2184, July.
    4. Owen O'Donnell & Eddy van Doorslaer & Adam Wagstaff & Magnus Lindelow, 2008. "Analyzing Health Equity Using Household Survey Data : A Guide to Techniques and Their Implementation," World Bank Publications - Books, The World Bank Group, number 6896.
    5. Finkelstein, Amy & McKnight, Robin, 2008. "What did Medicare do? The initial impact of Medicare on mortality and out of pocket medical spending," Journal of Public Economics, Elsevier, vol. 92(7), pages 1644-1668, July.
    6. Martin Feldstein & Jonathan Gruber, 1995. "A Major Risk Approach to Health Insurance Reform," NBER Chapters, in: Tax Policy and the Economy, Volume 9, pages 103-130, National Bureau of Economic Research, Inc.
    7. Garcia-Mandicó, Sílvia & Reichert, Arndt & Strupat, Christoph, 2021. "The Social Value of Health Insurance: Results from Ghana," Journal of Public Economics, Elsevier, vol. 194(C).
    8. Feldstein, Martin S, 1973. "The Welfare Loss of Excess Health Insurance," Journal of Political Economy, University of Chicago Press, vol. 81(2), pages 251-280, Part I, M.
    9. Limwattananon, Supon & Neelsen, Sven & O'Donnell, Owen & Prakongsai, Phusit & Tangcharoensathien, Viroj & van Doorslaer, Eddy & Vongmongkol, Vuthiphan, 2015. "Universal coverage with supply-side reform: The impact on medical expenditure risk and utilization in Thailand," Journal of Public Economics, Elsevier, vol. 121(C), pages 79-94.
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    Cited by:

    1. O'Donnell, Owen, 2024. "Health and health system effects on poverty: A narrative review of global evidence," Health Policy, Elsevier, vol. 142(C).
    2. Osei Afriyie, Doris & Loo, Pei Shan & Kuwawenaruwa, August & Kassimu, Tani & Fink, Günther & Tediosi, Fabrizio & Mtenga, Sally, 2024. "Understanding the role of the Tanzania national health insurance fund in improving service coverage and quality of care," Social Science & Medicine, Elsevier, vol. 347(C).

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