The Influence of Socio-Economic Factors on the Membership Status of Health Insurance Schemes: A Case of the Informal Sector in Tanzania

Abstract

One of the key factors in the development struggle is the way people in a particular socio-economic setting access their medical care and how affordable this healthcare is. A healthy population is more likely to translate into an economically sound nation. However, there has been an issue with the membership status of various health insurance schemes across the country. While the importance of having health, coverage is undeniable to almost all households, and the way it reduces hospital costs significantly, it has been noted that there is not a matched enthusiasm when it comes to enrolling in the various health insurance schemes. This study was therefore aimed at assessing the influence of socio-economic factors on the membership status of health insurance schemes, particularly in the informal sector in Tanzania. Data for this study had been obtained from a stratified three-stage sample of 15,720 households of the Tanzania Integrated Labor Force Survey 2020/2021. Specifically, the study targeted about 4,483 households that had household heads engaged in the informal sector to determine the influence of sex, age, education, marital status, place of residence, and income category on joining health insurance schemes. The results revealed that education level, income category, marital status, age group, and gender had a significant effect on the membership status of health insurance schemes. From this study, it is recommended that a balance is restored by encouraging more people to become members. A referral technique could prove useful, whereby members reach out to close family and friends as ambassadors of existing insurance schemes. More effort could also be directed towards the populace from the informal sector, through campaigns that pan out to all educational levels in the community. This can be best achieved through the local government authorities since they are closer to the communities. Needless to say, sensitization campaigns can be done through all major media; that is, radio, TV, and major newspapers.