Estimating Willingness-to-Pay for Health Insurance Among Rural Poor in India by Reference to Engel’s Law

Abstract

The following sections are included:Even the rural poor, with very little money, education or experience with (health) insurance consider health insurance as a necessity good (akin to food).On an average, willingness to pay (WTP) for community-based health insurance (CBHI) was around 4.5% of food expenditures in the studied locations.The average expenditure on food can serve as a better data series for the estimation of WTP for health insurance (HI) than either overall income or discretionary income.

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