Discussion Paper No.147 of 2013 on Effects of Health Insurance on Child and Maternal Health Outcomes in Kenya

Abstract

It is widely acknowledged that out-of-pocket health payments are both a burden as well as a hindrance to accessing health care, thus leading to worse health outcomes. Health insurance financing mechanism has been proposed as an alternative that will lead to better health outcomes, through its apparent increase in utilization of healthcare. While Kenya is advocating for the uptake of health insurance, its effects on health outcomes of the vulnerable groups, among them children and mothers, has not been established. This study, therefore, examines the effects of health insurance on child and maternal health, using data from the Kenya Demographic and Health Survey 2008/2009. A logistic model is estimated and we conclude that while health insurance does not show any beneficial effects on child health as measured by child mortality, there is some evidence that health insurance improves maternal health. Other control variables such as wealth index, employment, distance to health facility and area of residence are equally important in determining child and maternal health. Policies that increase the uptake of health insurance are likely to enhance maternal health. Similarly, there is need to ensure even distribution of health facilities in the country. Further, strategies aimed at poverty reduction, employment creation and education attainment, especially post-primary level education, should be enhanced to improve child and maternal health in the country.