Digital Health Micro Insurance and Access to Health Care: the Case of Embu County

Abstract

Good health is essential in ensuring the well-being of people yet, financial access to health care remains a challenge in developing countries. Members of poor households, informal sector workers and rural dwellers feel this strain more due to low insurance coverage. This has caused many individuals to forego seeking treatment, delay seeking treatment or end up becoming impoverished due to high health expenses. Microinsurance has proven to offer financial protection to its beneficiaries and has contributed to the reduction of incidences of OOP expenses. Over the years, the mode of delivery of microinsurance to low-income earners has evolved and now insurers are moving towards digitizing processes by leveraging on mobile phone technology and digital financial platforms. This has enhanced affordability of microinsurance products, made processes more efficient and proven to be convenient. This study sought to analyse how digital health microinsurance is facilitating access to health care using the case of Hospital Cash in Embu County. To achieve this, the study sought to: identify the characteristics of uptakers of Hospital Cash in Embu County; to determine how leveraging on digital technology has enabled Hospital Cash to promote uptake of health microinsurance in Embu County and to establish how Hospital Cash facilitates payment for healthcare services for uptakers in Embu County. The study employed the financial capability theory to understand the importance of the availability of financial services and innovations to choose from and financial knowledge in making improved financial decisions such as taking up health microinsurance, as a form of financial protection against health care expenses. The PACE client value assessment tool was also used to assess the increased individual value clients get from the digitization of microinsurance products which promotes enrollment. Primary data for the study was collected via telephone interviews using a semi-structured interview guide that enabled capturing of both qualitative and quantitative data. Data was collected from 42 individuals who have received a processed claim from the organization using a census approach and from 9 Key Informants who were purposively sampled based on their knowledge and experience in health microinsurance bringing the total number of respondents to 51. The study established that the product; has penetrated a large geographical area and has been able to majorly cover and facilitate access to healthcare to low income earning individuals majority who are women. Financial literacy, awareness and training on the product have significantly contributed to enrollment and digitization has increased efficiency and enabled the organization to avail the product at a rate that is affordable to low income earners. The payout received has enabled the beneficiaries to reduce incidences of OOP expenses and has offered a faster and more convenient mode of settling health expenses via mobile money. Recommendations are made on different areas the product can be improved on based on feedback from the respondents and generally on the viability of adopting digital health financing as a mode of promoting UHC particularly for low income earners.