Willingness to Pay for Community Based Health Insurance among Households in the Rural Community of Fogera District, North West Ethiopia

Abstract

Introduction: Community-based health insurance schemes are becoming increasingly recognized as a tool to finance health care in developing countries. The Ethiopian government is now implementing community-based health insurance for citizens in the informal and agriculture sectors as a pilot basis. Objective: This study was conducted to assess the willingness to pay for community based health insurance and associated factors among household heads in the rural community of Fogera district, North West Ethiopia, 2013. Methods: A community based cross-sectional study was conducted. Multistage sampling technique was undertaken to get a total of 528 households. Pre-tested, structured interviewer administered questionnaire was used to collect the desired data. Double-Bounded Dichotomous Choice Variant of the contingent valuation method was used to assess the maximum willingness to pay for the schemes, and a multiple linear regression equation model was used to answer how much one is willing to pay once one decides to enroll in the scheme. The degree of association between independent and dependent variables were assessed using coefficient and p-value. Results: The study revealed that, 80% of respondents expressed willingness to enroll in the community-based health insurance system. The average amount of money willing to pay for the scheme was 187.4Birr per household per annual. Based on the multiple linear regression model; being male [B=17.28], large household size [B= 4.54], schooling experience [B=1.85], farmer household [B=33.79], merchant household [B=58.50], richer household [B=14.94] were significantly associated with the willingness to pay for community based health insurance scheme. Conclusion and recommendation the willingness to pay for the Community-based health insurance scheme was encouraging. However, the amount of the premium should consider the family size, wealth status and the willingness of the households.