ABSTRACT
Health insurance plays an important role in reducing the burden of high healthcare cost on the household and ensuring its economic well-being. It turns unpredictable health expenditures into predictable insurance payments. It encourages longer-term investment in the well-being of the household. Insurance against large and unpredictable health expenditure is a key component for social protection and a significant factor in the economic development. It plays a vital role in the household’s access to medical care. The present study aims to convert OOP expenditure on healthcare into a prepayment scheme on the basis of willingness to pay. Health insurance has been growing steadily as one of the important ways of healthcare finance in India. The present chapter aims to estimate the willingness to pay for health insurance by households in Delhi, first as indicative of the benefits of a health insurance program, and second to understand the factors that contribute to the households' willingness to pay for health insurance.
