Evaluating the Health Effects of Micro Health Insurance Placements: Evidence from Bangladesh
This study examines the impact of micro heath insurance placement on health awareness, healthcare utilization and health status in rural Bangladesh.
The Grameen Bank (GB) in Bangladesh introduced a micro health insurance (MHI) scheme in the late 1990s to protect clients from health risks. Other MFIs in Bangladesh followed GB’s lead. The schemes aimed to improve the status of participating households by increasing their health awareness and use of health care. The study uses data from 329 households in GB’S operating areas. It bases results on econometric analysis conditioned on scheme placement. Findings indicate that:
- Placement has a positive association with all outcomes;
- Results are statistically significant for health awareness and healthcare utilization, but not for health status;
- Most MFIs in Bangladesh do not have the capacity to replicate MHI.
The paper suggests that government could contract out its poorly functioning health centers to existing microinsurers. This would save costs, increase client and health personnel confidence about program sustainability and avoid inefficient duplication of health service provision. The study contributes to literature on MHI impact on a broad set of outcomes.
