Estimating the Willingness to Pay for Community-Based Health Insurance Schemes in Nigeria: A Random Valuation Framework

The IUP Journal of Risk & Insurance, Vol. 7, Nos. 1 & 2, pp. 7-27, January & April 2010

Posted: 23 Apr 2010

See all articles by Ementa Hyacinth Ichoku

Ementa Hyacinth Ichoku

University of Nigeria - Department of Economics

William Fonta

University of Nigeria

John Ataguba

University of Cape Town (UCT) - Faculty of Health Sciences

Date Written: April 22, 2010

Abstract

Community-based health insurance schemes attempt to bridge the gap between increasing health needs and scarce resources in poor communities as well as providing protection for the most vulnerable groups through cross-subsidization. However, these schemes are often initiated without strong empirical information that can help to benchmark cost-sharing potentials of households in the community. This study assesses the Willingness To Pay (WTP) of rural Nigerians for one aspect of the nation’s new National Social Health Insurance Scheme initiated in 2004. As a case study, the Nsukka District of Enugu State, Southeastern Nigeria is used, where a rural community social health insurance scheme is being proposed by the local authorities. The results indicate that rural households in the area have WTP of about 181 Naira or $1.5 monthly as healthcare premium for this scheme. This amount was found to be positively and significantly correlated with household educational attainment, household wealth, household size and the level of trust households have in the management of the proposed scheme.

Suggested Citation

Ichoku, Ementa Hyacinth and Fonta, William and Ataguba, John, Estimating the Willingness to Pay for Community-Based Health Insurance Schemes in Nigeria: A Random Valuation Framework (April 22, 2010). The IUP Journal of Risk & Insurance, Vol. 7, Nos. 1 & 2, pp. 7-27, January & April 2010, Available at SSRN: https://ssrn.com/abstract=1594024

Ementa Hyacinth Ichoku (Contact Author)

University of Nigeria - Department of Economics ( email )

Department of Economics,
University of Nigeria Nsukka
Nsukka, Enugu State 4100002
Nigeria

William Fonta

University of Nigeria ( email )

184 ogui Road Enugu
Department of Science Education, Chemistry option
Nsukka, DE Enugu State 410001
Nigeria

John Ataguba

University of Cape Town (UCT) - Faculty of Health Sciences ( email )

South Africa

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