Respondents were asked about their maximum WTP for baseline BHI and, separately, its three variations (i.e. BHI without ceiling, without deductible, and without coinsurance).
However, the means of the WTP for BHI without ceiling, without deductible, and without coinsurance were not significantly different from each other at the 5% confidence level.
According to our results, at any given premium contribution the coverage that will be achieved if informal sector workers were offered the BHI without ceiling, without deductible or without coinsurance will be higher than the coverage that can be achieved if they are offered the baseline BHI.
That means lower insurance premiums and lower deductibles, without a significant rise in taxes.
In addition to valuing the BHI as it has been laid out by the central government (henceforth called baseline BHI), we asked respondents to value separately three variations of the BHI (BHI without ceiling, BHI without deductible, and BHI without coinsurance).
Among the 609 respondents who gave valid answers to the four WTP questions only 9, 20 and 27 were willing to pay more for the baseline WTP than for the BHI without ceiling, the BHI without deductible, and the BHI without coinsurance, respectively.
Some have noted that they can find used replacement phones on sites like Craigslist for about the same price as the insurance deductible, and without having to pay monthly premiums.
The ranking of the point estimates of WTP for the different types of BHI was robust across all three equity weighting schemes (BHI without ceiling > BHI without coinsurance > BHI without deductible > baseline BHI) (Table 2).
