The Impact of a Health Insurance Programme: Evidence from a Randomized Controlled Trial in Kenya

This study evaluates the impact of introducing a new health insurance product in rural Kenya. Health insurance was found to reduce net health expenditure and informal borrowing for medical costs, and to increase non-food and overall consumption. However, the study observed no significant differences in health outcomes between the control and treatment groups.

Demand for the product proved sensitive to price discounts, but not to training in financial and risk literacy. The main determinants of renewal were positive or negative experiences, rather than hospital use or price.