The role of micro-insurance in the field of public health

• Published in: European journal of public health Vol. 29; no. Supplement_4
• Main Authors: Novakovic, T, Jevtic, M, Popović, L j, Ćosić, D j
• Format: Journal Article
• Language: English
• Published: Oxford Oxford University Press 01-11-2019; Oxford Publishing Limited (England)
• Subjects: Access; Citizen participation; Civil society; Coping; Disasters; Financing; Fraud; Health care; Health care expenditures; Health care industry; Health care policy; Health insurance; Health problems; Health risks; Health services; Households; Income; Insurance; Insurance coverage; Labor movements; Low income areas; Low income groups; Populations; Poverty; Productivity; Public health; Quality of care; Risk management; Risk reduction; Social protection; Social reform; Social security; Social systems
• DOI: 10.1093/eurpub/ckz186.105
• EISSN: 1464-360X
• ISSN: 1101-1262

Abstract
Issue/problem
It is recognized that is very important to have an instrument to mitigate risks and reduce the vulnerability of poor and low-income households, especially in disasters. Health risks are often identified by the poor people as the greatest and costliest risks they face. Millions of people worldwide fall into poverty as a result of excessive healthcare costs because the state doesn’t provide them health insurance. Health problems not only impact household budget, but also reduce the productivity and reduce the opportunity for growth. Therefore the reform of social systems poses a considerable challenge.
Description
In order to remedy the situation, global actors like World Health Organization (WHO, International Labour Organization (ILO), the World Bank (WB) advocate for a special category of insurance, health micro-insurance (HMI), as a medium term solution for health care financing, that tends to access equitable and quality health care. HMI was created to promote insurance coverage among economically vulnerable sections of society. It is one of the potential ways that might provides the protection of low-income people against specific perils in exchange for regular premium payment proportionate to the likelihood and cost of the risks involved.
Results
As a health care financing mechanism, HMI has a short history, but offers the following benefits: it can improve the access of certain vulnerable populations to healthcare, develop more suitable services, facilitate the participation of civil society and limit fraud, educate populations about social security.
Lessons
This instrument has not been conceptualized to compete or replace public social protection. Rather, it is most effective when embedded into a comprehensive social protection framework which includes informal, private and other risk management strategies of preventive measures, mitigation and suitable coping strategies.
Key messages
HMI can mitigate the risks of population and groups, ill health and provides hope that the poor will receive reliable and adequate access to affordable health care.
HMI can be seen as a tool for better public health in vulnerable and poor communities.