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Working Paper 332 - The Impacts of Community-Based Health Insurance on Poverty Reduction

Andinet Woldemichael

Working Paper Series from African Development Bank

Abstract: Every year, millions of people suffer from financial catastrophe due to out-of-pocket healthcare payments and most of them are pushed into poverty. This study investigates the impacts of community-based health insurance schemes on health-related financial shocks and poverty, using a nationally representative household survey data from Rwanda. We address issues of selection bias in health insurance enrollment, heterogeneity in treatment effects and non-normality in the outcome variables using Extended Two-Part Model within a Bayesian estimation framework. We find that community-based health insurance schemes reduce the incidence of catastrophic healthcare spending by about 20 percentage points. We also finding that community-based health insurance schemes reduce the headcount poverty rates and the poverty gap due to out-of-pocket healthcare payments by about 8 percentage points and by about 3 USD in 2000 prices, respectively. The estimated treatment effects are however heterogeneous across households.

Keywords: impact; selection bias; endogeneity; health insurance; low-income; community-based JEL Classification: C21; C11; D04; I13; I15 (search for similar items in EconPapers)
Date: 2020-05-25
New Economics Papers: this item is included in nep-dev, nep-ias and nep-mfd
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:adb:adbwps:2458

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