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INSURING HEALTH : TESTING THE EFFECTIVENESS OF MICRO-HEALTH INSURANCE TO PROMOTE ECONOMIC WELLBEING FOR THE POOR

Health insurance is one of the most important policy issues in the developing world today. Developing countries suffer 90% of the global disease burden but represent only 12% of the world’s spending on health care. More than half of health expenditures in poor countries are out-of-pocket payments by individual households. This situation is particularly dangerous for the rural poor. Agricultural activities can lead to high instances of injury and illness. Health shocks and associated high medical costs can cause poor families to sell productive assets or reduce consumption to the point where economic wellbeing is endangered and the family’s health and the children’s educational opportunities are compromised. These strategies for coping with health issues can trap families in long-term poverty.