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Willingness to Pay for Health Insurance amongst the Urban Poor: Evidence from a Slum in Mumbai, India
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The study aims to assess the demand for health insurance, gather evidence on willingness to pay for it and its determining factors amongst the urban poor in Mumbai. This was ascertained through dichotomous bidding process on 300 households. Results of the multivariate regression model suggest that households with presence of morbid conditions and prior experience of inpatient admissions were more likely to join and pay for health insurance. They indicate the need for a state-subsidized insurance scheme as more than 50 per cent of the people willing to pay expressed their inability to pay more than one per cent of their annual income.
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