National Health Insurance Scheme and household welfare: Evidence from Ghana

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.

Automated summary

This study investigates the impact of the National Health Insurance Scheme in Ghana on household poverty and basic asset accumulation. The researchers control for endogeneity and sample selection bias. The findings indicate that subscribing to health insurance reduces household poverty and has a positive effect on asset accumulation. Moreover, the results show a more significant decrease in poverty for rural households. Expanding the coverage of health services through the insurance scheme is recognized as a potential mechanism for improving household welfare.