Can Community Based Health Insurance Help in Reducing Protection Gap in India?

Most developed and developing countries continue to grapple to meet the financing required for the healthcare needs of its population. The problem is more acute in developing countries owing to limited financial capacity. This shortfall in public financing to meet the healthcare needs forces households to finance their own requirement. With limited availability or financial capacity to buy adequate insurance cover, the financial burden of meeting the healthcare requirement can be daunting, especially for people in the lower- income strata of the society who have to dig deep into their savings or borrow from family/friends, take loans or worst, sell-off productive assets, thus setting them back economically. This paper attempts to understand the healthcare protection gap that exists in India and can community-based health insurance schemes help in reducing that gap, especially for people in the lower-income segment.