Willingness-to-Pay for Family-Based Health Insurance: Findings From Household And Health Facility Surveys in Central Vietnam

Abstract

This study explores factors associated with people’s willingness-to-pay (WTP) for family-based health insurance covering the whole family in central Vietnam. The amount of WTP was elicited by using a contingent value method in 2014 and the mean WTP was 2.27 percent of GDP per capita. Firstly, our study reveals that even the poor are willing to pay towards obtaining health insurance. Secondly, our regression analysis shows that the health insurance status of the household head, in addition to education, wealth level, and family size, is associated with WTP. Furthermore, our estimation results with restricted sample households whose designated health facility is the commune health station (CHS) confirm that healthcare service quality measures designed based on patients’ past experiences at the CHS are significant predictors of WTP as they can affect people’s valuation of the benefit of the health insurance.