Determinants of private health insurance in Andhra Pradesh: a case study

Abstract

Private health insurance plays a significant role in meeting the healthcare funding shortfalls. In this connection, the objectives of the paper are to explore the reasons for purchasing private health insurance and to identify the determinants of private health insurance in East Godavari District of Andhra Pradesh. Simple ratios and logistic regression techniques have been employed for analysis. The study found that being sure of getting into hospital quickly, fear of large medical or hospital bills are very important among the reasons for purchasing private health insurance in the district. The determinant analysis suggests that health insurance purchase decision has been determined by annual income, annual health expenditure, household size and gender rather than age, education, marital status, smoking, alcohol use and environmental rating. Economic development programs should help enhance income to reach a higher standard of living and in doing so boosts their economic access to health insurance policies and the relevant health services. This implies that health insurance policies should be completed with the development strategies of the government so that people have better purchasing power and hence access to the healthcare services.