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Only 1.1% of Ugandan have health insurance coverage- report

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Only 1.1% of Ugandan have health insurance coverage- report
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Uganda’s health insurance coverage remains critically low, with only 1.1% of the population covered under any health insurance policy, according to the 2024 National Population and Housing Census   final report.

The report, which collected data on whether household members were covered by any health insurance policy or medical scheme, highlights an alarming reality.

"The results show that Uganda's health insurance coverage is low, at only 1.1% of the household population," states the report.

The report further revealed stark disparities between urban and rural areas.

"Health insurance coverage in urban areas (1.6%) was more than twice that of rural areas (0.7%)," the report notes.

Among regions, Kampala Capital City recorded the highest coverage at 4.1%, while Bukedi and Sebei sub-regions had the lowest coverage at just 0.4% each.

Notably, there were no significant differences in coverage between males and females.

The report defines a health insurance policy as “An agreement between the insured and the insurance company whereby the insurance company agrees to cover the costs of certain medical benefits, such as medical tests, availing drugs to sick clients, and offering treatment services."

Insurance companies typically contract service providers like hospitals, clinics, and pharmacies to deliver these medical services.

Low uptake of health insurance remains a significant challenge, attributed to competing financial priorities.

The Insurance Regulatory Authority (IRA) Annual Report 2023 indicated that the uptake of medical insurance among individuals is very low because of other expenses like food, child education, and other household needs that compete for income.

Additionally, high out-of-pocket expenditures for healthcare leave many families vulnerable to financial shocks.

During the COVID-19 pandemic, some households sold assets to afford hospital bills, exacerbating poverty levels.

While health insurance remains low, the insurance market has seen positive trends in other sectors.

According to the IRA report, health maintenance organizations (HMOs) grew by 47.24%, while life insurance business grew by 21.90% in 2023. The report further highlights:

"The faster rate of growth in life insurance indicates a positive trend towards individuals prioritizing long-term financial security and protection."

The census final report underscores the need for a National Health Insurance Scheme (NHIS), describing it as, "A health financing system designed to pool funds to provide access to quality, affordable personal health services for all Ugandans based on their health needs."

Such a scheme could reduce the economic burden of healthcare on households and improve access to medical services.

With only 1.1% of the population covered under health insurance, Uganda faces a pressing need to prioritize health financing reforms.

The NHIS presents a potential solution to address the gaps highlighted in the NPHC 2024 report, but its success depends on effective implementation and public awareness campaigns.

This data calls for urgent collaboration among policymakers, insurers, and stakeholders to expand access to health insurance and ensure better health outcomes for all Ugandans

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