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The Demand for Private Health Insurance in Malawi

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  • Makoka, Donald
  • Kaluwa, Ben
  • Kambewa, Patrick

Abstract

This study investigates the determinants of demand for private health insurance among formal sector employees in Malawi, a poor country with heavy pressure on under-funded free government health services. The study is based on membership in the Medical Aid Society of Malawi’s (MASM), three schemes, namely: the VIP, the best; the Executive, the intermediate; and the Econoplan, the minimum. The results indicate that formal sector employees prefer to receive medical treatment from private fee-charging health facilities, where health insurance would be relevant. The study finds that the probability of enrolling in any of MASM’s schemes increases with income and with age for the top and minimum schemes. More children and good health status reduce the probability of enrolling into the two lower schemes. The results suggest the potentially important roles that can be played by information and interventions that address the affordability factor such as through employer contributions that take into consideration income and family size.

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File URL: http://mpra.ub.uni-muenchen.de/4974/
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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 4974.

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Date of creation: 2007
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Handle: RePEc:pra:mprapa:4974

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Related research

Keywords: Health insurance; MASM; Multinomial logit;

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  1. Joan Costa & Jaume Garcia, 2001. "Demand for private health insurance: Is there a quality gap?," Economics Working Papers 531, Department of Economics and Business, Universitat Pompeu Fabra.
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