Determinants of ownership of health insurance among employees working in the informal and formal sectors in Kenya case study Rift Valley provinces

Abstract

The research study sought to establish the determinants of ownership of health insurance among people working in the informal and formal sectors in Kenya. It was guided by such specific objectives as; to determine the factors that influence employees to own or reject an insurance; to evaluate socio-economic factors influencing choice of health insurance by employees in Kenya; to determine the role of information on the choice factors of health insurance and finally to determine how location factor influences the choice of health insurance in Kenya.Thestudyfocus on the variables that would determine the ownership of health insurance by employees in the formal and the informal sectors. It will also outline some of the theories that have been laid down with regard to the health insurance policies formulation and implementation. Findings revealed significant relationship between the sector of employment and gender of the respondents χ2 (1) = 11.348, p<0.05, religion (χ2 (3) = 3.854, p>0.05), education status (χ2 (1) = 125.498, p<0.05), marital status (χ2 (3) = 30.222, p<0.05) and health status (χ2 (4) = 13.975, p<0.05). It was also established that there was no significant relationship between the sector one was employed in and the status of insurance coverage for such an individual at χ2 (1) = 2.818, p>0.05 with the odds of one being employed in the formal sector and having an insurance cover to that of one having a cover but working in the informal sector was not significant (OR= 2.641 (0.813 – 8.577), p=0.106). Health insurance uptake considering the sector of the economy in this region is largely dependent, and significantly so, on highest level of education and total annual expenditure in that there is likely to be an increase in health insurance uptake among households headed by males who have attained higher levels of education and also have higher disposable income. Policy makers to come up with measures that cap unfavorable rates especially in the informal sector of the economy that has derailed up take of health insurance due to stringent rules and policies in the industry that scare away potential customers from this sector