Factors Influencing Households’ Willingness to Pay for National Health Insurance Scheme (NHIS) in Osun State, Nigeria

Abstract

Out-of-pocket finance of health care has constituted serious barrier to health service seeking behaviour in Nigeria. This study analyzed the factors influencing rural households' willingness to pay (WTP) for NHIS in Osun State. Data were collected from 208 respondents using the multi-stage sampling procedures. Data were analyzed with descriptive statistics and Probit regression. Results showed that majority of the respondents were either not falling sick or recording two time morbidity in three months. Malaria was the most common form of sickness with 25 percent and 36.32 percent not spending any amount on households' health. Also, 49.10 percent were aware of the scheme and 63.21 percent expected the scheme to meet their households' health services needs. Willingness to pay decreased significantly with household heads' age and frequency of falling sick (p<0.10) and increased significantly with awareness, expected workability and households' preference for pre-paid system (p<0.05). It was recommended that more awareness about the scheme should be created in rural areas.