G.R. Chintala, NABARD, Bangladesh, Partnerships that Build Bridges to New Fro...
Shameran Abed, Why Integrating Microfinance, Health Education, and Other Forms of Health Protection
1. Taking health to the people:
comprehensive poverty reduction
Shameran Abed
BRAC
November 14, 2011
www.brac.net
2. BRAC in 30 seconds
• Founded in: Bangladesh, 1972
• Program coverage: 136 million worldwide
(110m in Bangladesh)
• Working in: 10 countries
• Bangladesh budget (2010): US$ 495
million
• Self generated: 71%
• Health budget as %: <10
www.brac.net
12. Why Health Insurance?
• Expenditure on health as % of GDP - 3.4
• Government expenditure as % of total exp. on
health - 31
• Out-of-pocket spending as % of total exp. on
health - 58.9
• Out-of-pocket spending as % of private
expenditure on health - 86
Source: WHO 2007 and ILO 2007
www.brac.net
13. In the Absence of
Health Insurance
There are significant health costs:
- Not seeking healthcare when needed
- Seeking care very late (often when it is too late)
- Poor quality of care
And financial costs:
- The financial shock of health expenditure could push
people below the poverty line
- Nearly one-third of defaulters for microfinance cite health
shocks as primary reasons for defaulting on their loans
www.brac.net
14. Challenges
• Is it possible to provide value for money
and still make it viable?
• Supply side weaknesses
• Poor renewal rate
• Adverse selection/moral hazard
www.brac.net
15. Opportunities
• Leverage extensive distribution network of
MFIs to offer health insurance at low-cost
• Provide an additional suite of products to
borrowers which will likely lead to lower
default rates and better retention
• Potential for integrating technology to
reduce costs of delivery
www.brac.net