Mediation effect of trust on willingness to pay for health insurance among co-operative members in Tanzania

Abstract

This study analysed co-operative members’ willingness to pay (WTP) for health insurance. The social capital theory was adopted to analyse the mediation role of trust issues on other variables determining co-operative members’ WTP for health insurance. A single Contingent Valuation Method (CVM) was used to elicit and estimate the amount co-operative members that were willing to pay for health insurance. The Partial Least Square Structural Equation Modelling (PLS-SEM) was used to analyse variables affecting co-operative members’ WTP for health insurance. Findings indicated that most co-operative members were willing to pay for health insurance. Further, except for price, trust issues fully and partially mediate quality attributes and access criteria, respectively, when it comes to WTP for health insurance. Firm trust is required among co-operators, management, health insurers, and health facilities in order to increase WTP for health insurance among co-operative members.