National Health Insurance Scheme and household welfare: Evidence from Ghana

Abstract

This study examines the effect of the National Health Insurance Scheme on household poverty and basic asset accumulation using the Ghana Demographic and Health Survey. We corrected the endogeneity and sample selection bias associated with subscription to the scheme. The estimates show that health insurance subscription reduces household poverty and has a positive asset accumulation effect on households. The results show consistency in decreasing poverty more among rural households. We identify an increase in the coverage of health services needed by households in the health insurance scheme as a potential channel through which subscription could smoothen household welfare.