New Health Economics Research from University of Oslo Outlined (The role of risk preferences: voluntary health insurance in rural Tanzania): Economics – Health Economics

2023 APR 14 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Researchers detail new data in health economics. According to news reporting originating from the University of Oslo by NewsRx correspondents, research stated, “Lower-middle-income countries (LMICs) have a common goal to achieve universal health coverage (UHC) through voluntary health insurance schemes. This is important to improve access to healthcare services and ensure financial protection for all by reducing out-of-pocket expenditures.”

Financial supporters for this research include Norgesuniversitetet.

Our news correspondents obtained a quote from the research from University of Oslo: “This study aimed to examine the role of risk preferences on enrollment status (currently insured, previously insured, and never insured) into a Tanzanian voluntary health insurance scheme targeted at the informal sector. Data were collected from households in a random sample of 722 respondents. The risk preference measure was based on a hypothetical lottery game which applies the BJKS instrument. This instrument measures income risk where the respondents are to choose between a certain income and a lottery. Both multinomial and simple logistic regression models have been used to analyze the relationship between risk aversion and enrollment status. On average, the respondents have a high degree of risk aversion, and the insured are more risk averse than the uninsured (previously insured and never insured). There is a weak tendency for the wealthiest, measured by household income or total household expenditure, to be somewhat more risk averse than the less wealthy. Logistic and multinomial logistic regressions show that risk aversion is strongly associated with enrollment status. A higher degree of risk aversion significantly increases the probability of being insured, relative to being previously insured, and relative to being never insured.”

According to the news reporters, the research concluded: “Risk aversion matters in a decision to enroll into the iCHF scheme. Strengthening the benefit package for the scheme, might increase the enrollment rate and hence improve access to healthcare services for people in rural areas and those employed in the informal sector.”

For more information on this research see: The role of risk preferences: voluntary health insurance in rural Tanzania. Health Economics Review, 2023,13(1):1-15. (Health Economics Review - https://healtheconomicsreview.biomedcentral.com/). The publisher for Health Economics Review is BMC.

A free version of this journal article is available at https://doi.org/10.1186/s13561-023-00432-z.

Our news editors report that more information may be obtained by contacting Alphoncina Kagaigai, Institute of Health and Society, Department of Health Management and Health Economics, University of Oslo. Additional authors for this research include Sverre Grepperud.

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