Impact of Micro Health Insurance Plans on Protecting Households Against Catastrophic Health Spending in Tanzania

Abstract

The paper analyses the impact of households’ membership in micro health insurance plans on the protection against catastrophic health spending, in the episodes of illness. The analysis considers the groups of poor and non-poor members of micro health insurance schemes and non-members in both urban and rural areas in Tanzania. Matching estimator method was used to analyse the effect of membership in the micro health insurance on the protection against catastrophic health spending, in the episodes of illness among the members of micro health insurance scheme and non-members for the different income groups. Data used in the analysis involved those on the 10,300 households involved in Tanzania Demographic and Health Survey of 2011. The estimation results revealed that insurance schemes enabled households to get protection against catastrophic health spending, in the episodes of illness to members of insurance schemes compared to non-members. Thus, it is recommended that households be encouraged to enroll in the micro health insurance schemes. The insurance scheme also needs to be close to the would be customers. This will also contribute to poverty reduction in the country as well.