Bringing Health Microinsurance to Kenyans via Mobile Phone

Credit: Sarah Farhat / World BankBy Lauren Braniff and Michel HanouchWASHINGTON DC, Jul 26 2018 (IPS)Households in developing countries spent $148 billion out-of-pocket for healthcare expenses in 2015, and each year 100 million people are pushed into extreme poverty because of the high cost of healthcare. Particularly for major inpatient expenses, health insurance is the most effective way for people to reduce their out-of-pocket costs and avoid having a major medical emergency plunge them deeper into poverty.However, insurance providers often have difficulty convincing low-income customers to pay insurance premiums now for needs that may or may not arise later.Fortunately, digital financial services (DFS) has made it easier to bundle insurance with other financial products in ways that address a range of inpatient and outpatient health services and that introduce people to the benefits of insurance.As discussed in a previous CGAP blog post, “A Digital Finance Prescription for Universal Health Coverage,” various DFS are helping patients pay for medical treatment in many developing countries. Digital credit is enabling patients to obtain instant loans for healthcare, even in remote areas.In fact, CGAP research in Kenya found that paying medical bills was one of the most common reasons people cited for borrowing from digital lending platform m-Shwari. Digital savings is another example. Savings products allow people to save and easily withdraw funds from dedicated health sa...
Source: IPS Inter Press Service - Health - Category: International Medicine & Public Health Authors: Tags: Development & Aid Featured Global Headlines Health Population Poverty & SDGs TerraViva United Nations Source Type: news