The effects of subsidised micro health insurance on insurance demand and welfare outcomes in rural Burkina Faso

Lisa Oberländer, Michael Schleicher, Germain Savadogo, Aurélia Souares, Rainer Sauerborn and Stefan Klonner
Savings and Development 2015, No. Special Issue - UMM Master Awards 2014, pp. 77-139

This paper evaluates the impact of a 50 per cent subsidy on micro health insurance in Burkina Faso. Applying a sharp regression discontinuity design, we found, first, that the subsidy doubled insurance enrollment, implying that poor households’ price elasticity of demand for health insurance is about one. Second, being eligible for the subsidy halves the incidence of healthcare related out-of-pocket expenditures, and, third, reduces the incidence of lost days due to illness by about 40 per cent. We conclude that pricing of health-related micro insurance products has large effects on both insurance take-up and household welfare in low-income contexts.

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Issue: 2015 Special Issue - UMM Master Awards 2014
Contributors: Klonner, Stefan   Oberländer, Lisa   Sauerborn, Rainer   Savadogo, Germain   Schleicher, Michael   Souares, Aurélia   
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