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This study investigates the factors influencing patients’ willingness to pay (WTP) for medication and an improved Community Health Insurance Fund (iCHF) in Tanzania, conducted across various healthcare facilities. Findings indicate that most patients are willing to pay amounts similar to current iCHF premiums, with higher WTP observed among those with non-communicable diseases and higher education levels, while those enrolled in insurance programs or utilizing user fee waivers showed lower WTP. The study emphasizes the need for targeted interventions that consider demographic factors to improve health insurance schemes for the informal sector in Tanzania, aiming to enhance access to medications.