OBJECTIVES

Health insurance is increasingly being recognized globally as another avenue in which additional resources for resources can be mobilized to finance health care. The cost of health care services can potentially constitute barriers to access, especially where people have to pay out of pocket at the point of use undermining advancement towards achieving Universal Health Coverage objectives.

In Uganda, the total expenditure on health is distributed as 17.4 per cent by government and 82.6 per cent private expenditure. Out of the private expenditure, 65.4 per cent come from Out-Of-Pocket payment hence making it the single largest component of total healthcare expenditure yet the health benefits of insurance are positive and clear.

METHODS

Using a probit model on the 2011 Uganda Demographic Health Survey (UDHS) data, we investigated the factors influencing demands for health insurance in Uganda.

RESULTS

The results revealed that wealth, level of education, access to information and area of residence are significantly associated with demand for health insurance. However, age, marital status and health status as proxied by smoking are insignificant. Results further revealed that health insurance is more pronounced among wealthier, educated and well-informed individuals who reside in urban areas

CONCLUSIONS

The study, therefore, recommends for the policies geared towards poverty reduction, investing in education both at primary and secondary levels, increased public awareness about benefits of health insurance and establishment of a National Social Health insurance scheme since such variables were highly associated with demand for health insurance.