Effectiveness of community health financing in meeting the cost of illness

How to finance and provide health care for the more than 1.3 billion rural poor and informal sector workers in low- and middle-income countries is one of the greatest challenges facing the international development community. This article presents the main findings from an extensive survey of the li...

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Main Authors: Preker Alexander S., Carrin Guy, Dror David, Jakab Melitta, Hsiao William, Arhin-Tenkorang Dyna
Format: Article
Language:English
Published: The World Health Organization 2002-01-01
Series:Bulletin of the World Health Organization
Subjects:
Online Access:http://www.scielosp.org/scielo.php?script=sci_arttext&pid=S0042-96862002000200010
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author Preker Alexander S.
Carrin Guy
Dror David
Jakab Melitta
Hsiao William
Arhin-Tenkorang Dyna
author_facet Preker Alexander S.
Carrin Guy
Dror David
Jakab Melitta
Hsiao William
Arhin-Tenkorang Dyna
author_sort Preker Alexander S.
collection DOAJ
description How to finance and provide health care for the more than 1.3 billion rural poor and informal sector workers in low- and middle-income countries is one of the greatest challenges facing the international development community. This article presents the main findings from an extensive survey of the literature of community financing arrangements, and selected experiences from the Asia and Africa regions. Most community financing schemes have evolved in the context of severe economic constraints, political instability, and lack of good governance. Micro-level household data analysis indicates that community financing improves access by rural and informal sector workers to needed heath care and provides them with some financial protection against the cost of illness. Macro-level cross-country analysis gives empirical support to the hypothesis that risk-sharing in health financing matters in terms of its impact on both the level and distribution of health, financial fairness and responsiveness indicators. The background research done for this article points to five key policies available to governments to improve the effectiveness and sustainability of existing community financing schemes. This includes: (a) increased and well-targeted subsidies to pay for the premiums of low-income populations; (b) insurance to protect against expenditure fluctuations and re-insurance to enlarge the effective size of small risk pools; (c) effective prevention and case management techniques to limit expenditure fluctuations; (d) technical support to strengthen the management capacity of local schemes; and (e) establishment and strengthening of links with the formal financing and provider networks.
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spelling doaj.art-0b4a0ef91a6f403b8b1cba309464356a2024-03-02T05:16:06ZengThe World Health OrganizationBulletin of the World Health Organization0042-96862002-01-01802143150Effectiveness of community health financing in meeting the cost of illnessPreker Alexander S.Carrin GuyDror DavidJakab MelittaHsiao WilliamArhin-Tenkorang DynaHow to finance and provide health care for the more than 1.3 billion rural poor and informal sector workers in low- and middle-income countries is one of the greatest challenges facing the international development community. This article presents the main findings from an extensive survey of the literature of community financing arrangements, and selected experiences from the Asia and Africa regions. Most community financing schemes have evolved in the context of severe economic constraints, political instability, and lack of good governance. Micro-level household data analysis indicates that community financing improves access by rural and informal sector workers to needed heath care and provides them with some financial protection against the cost of illness. Macro-level cross-country analysis gives empirical support to the hypothesis that risk-sharing in health financing matters in terms of its impact on both the level and distribution of health, financial fairness and responsiveness indicators. The background research done for this article points to five key policies available to governments to improve the effectiveness and sustainability of existing community financing schemes. This includes: (a) increased and well-targeted subsidies to pay for the premiums of low-income populations; (b) insurance to protect against expenditure fluctuations and re-insurance to enlarge the effective size of small risk pools; (c) effective prevention and case management techniques to limit expenditure fluctuations; (d) technical support to strengthen the management capacity of local schemes; and (e) establishment and strengthening of links with the formal financing and provider networks.http://www.scielosp.org/scielo.php?script=sci_arttext&pid=S0042-96862002000200010Community health services/economicsFinancing, HealthConsumer participation/economicsHouseholdsCost of illnessDeveloping countriesMulticenter studies
spellingShingle Preker Alexander S.
Carrin Guy
Dror David
Jakab Melitta
Hsiao William
Arhin-Tenkorang Dyna
Effectiveness of community health financing in meeting the cost of illness
Bulletin of the World Health Organization
Community health services/economics
Financing, Health
Consumer participation/economics
Households
Cost of illness
Developing countries
Multicenter studies
title Effectiveness of community health financing in meeting the cost of illness
title_full Effectiveness of community health financing in meeting the cost of illness
title_fullStr Effectiveness of community health financing in meeting the cost of illness
title_full_unstemmed Effectiveness of community health financing in meeting the cost of illness
title_short Effectiveness of community health financing in meeting the cost of illness
title_sort effectiveness of community health financing in meeting the cost of illness
topic Community health services/economics
Financing, Health
Consumer participation/economics
Households
Cost of illness
Developing countries
Multicenter studies
url http://www.scielosp.org/scielo.php?script=sci_arttext&pid=S0042-96862002000200010
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