DETERMINANTS OF HEALTH INSURANCE CHOICES part 1

2600 WORDS

Background to the Problem

Health care financing in developing countries remain a policy issue with few countries able to spend the $34 per capita recommended by the World Health Organisation as minimum requirement for basic health care. Lack of financial resources to adequately meet the increasing demand for health care needs of the African population remain a persistent problem, and is becoming more critical in the context of increasing incidences of non- communicable diseases.

Consequently, there have been attempts by African governments to explore different methods of health care financing. The 2005 World Health Assembly encouraged its member states to move towards achieving universal coverage. Universal coverage does not only relate to generation of health care funds but implies equity in access and guaranteed financial risk protection. As it is the desire of all countries to move towards a system of universal coverage,6 it is argued that ‘irrespective of the source of financing for the health system selected, prepayment and pooling of resources and risks arbasic principles in financial-risk protection’. Further recognition of the importance of universal coverage for countries led to the WHO proposing the 2010 World Health Report to address financing for universal health coverage (UHC).

Since independence, one of the overall objectives of the government of Kenya has been to promote and improve the health status of Kenyans. This objective is motivated by the evidence that investing in health produces positive outcomes in human capital that have long term impacts in the overall socio-economic development of a country (World Bank 1993; Mwabu 1998). In a number of government policy documents and in successive National Development Plans, the government has set forth that the provision of health services should be available, accessible and affordable to those in most need of healthcare (sessional paper No. 10 of 1965; KHPFP, various Development Plans).

Different health financing policy initiatives have b