A peer reviewed research article published in the Social Science and Medicine journal of Science Direct, it explores the limitations of contributory health insurance in achieving universal health coverage for low and middle income countries. It has been coauthored by representatives from John Hopkins Bloomberg School of Public Health, AFD, World Bank, WHO, R4D and Abt Associates.
Abstract
Despite limited evidence of successful development and implementation of contributory health insurance and low and middle income countries, many countries are in the process implementing such schemes. This commentary summarizes all available evidence on the limitations of contributory health insurance including the lack of good theoretical underpinning and the considerable evidence of inequity and fragmentation created by such schemes. Moreover, the initiation of a contributory health insurance scheme has not been found to increase revenues to the health sector or help health countries achieve universal health coverage.
Low and middle income countries can improve equity and efficiency of the health sector by replacing out-of-pocket spending with pre-paid pooling mechanisms, but that is best done through budget transfers and not by contributory insurance that links payment to sub-population entitlements.
