The Implications of Health Insurance on Demand for Healthcare in Cameroon

Abstract

Health insurance is an important factor in enhancing demand for healthcare, especially in the context of developing countries like Cameroon, where a greater proportion of the population have financial barriers to health services. This study investigates the implications of the main health insurance models; community-based, government-based, and employer-based insurance coverage on healthcare demand in Cameroon. Based on the probit regression model and data drawn from the 2018 Cameroonian Demographic and Health Survey, with a total sample of variables derived from a sample of 10,303 observations, the study found that health insurance significantly increases the likelihood of individuals seeking healthcare, with community-based health insurance demonstrating a compelling impact, and elevating demand by approximately 67.7%. Conversely, government and employer-based insurances also positively influence healthcare demand, albeit with distinct variations across demographic segments. Hence, the study underscores and recommends the importance of employer-sponsored insurance in enhancing healthcare access and suggests expanding such programs will lead to improved health outcomes across the population. This can be done by incentivizing businesses to offer comprehensive coverage which includes tax breaks or subsidies. This will enhance health benefits thereby ensuring that employees and their families have better access to necessary healthcare services. Similarly, it is important to strengthen Government Health Insurance by Increasing funding and resources for Government Based Health Insurance (GBHI) programs that will expand service delivery by improving healthcare infrastructure, increase coverage options, and ensuring that government-sponsored plans effectively meet the needs of underserved populations.