As a provider of health services in a variety of settings, the Anglican Church is confronted with the impact of the financial insecurities faced by those on low-incomes as they manage their health care expenditure. AHN believes that the health microinsurance (HMI) concept may provide its members with an opportunity to risk pool their health expenditure where mainstream insurance markets are too expensive. In utilising this concept, AHN hopes to be able to develop an adaptable tool that can be used to pursue its wider mission to improve health outcomes in the communities served by the church. In order to test this concept, AHN has established pilot programmes in Dar es Salaam, Tanzania and in Karakonam, India. In partnership with the leading microinsurance organisation, MicroEnsure, AHN is putting in practice two different approaches to developing microinsurance.

The India pilot is recruiting people to its HMI project from amongst the villages that are within reach of the Anglican hospital in Karakonam. As a 650 bed teaching hospital with a range of outreach initiatives, the hospital has been able to animate its existing network of former patients to gain the commitment and enthusiasm of its regular client base. It offers $600 coverage from a range of premiums starting at $3 per year for in-patient treatment for a family of five whose income is below established poverty levels. It can achieve this through its existing system of subsidies for low-income communities. Launched in October 2009, it had attracted 25,000 people by the year-end and expects to reach 100,000 by the end of 2010.

The Tanzania pilot is scheduled to begin in Dar es Salaam, Tanzania in the third quarter of 2010. It will provide an HMI product to a target market of 50,000 - 100,000 individuals from amongst the parishes of the Anglican Diocese. Three tiers of cover will be offered, differentiated by premium and annual maximum benefit. Cross subsidy will allow the lower level policy to be offered at a reduced rate to the poorest members of the community. Insured families will have access to treatment for malaria and to maternity services at both in and out patient facilities. These two conditions were identified as the greatest threats to local physical and financial well-being by focus group discussions amongst physicians, clergy and church members in the diocese. MicroEnsure will manage the service provider network and claims processing function. The policies will be underwritten by a commercial insurance company. As the lessons emerge, AHN will identify other pilot locations where more Anglican communities can benefit from this innovative opportunity. For further information,contact Lee Hogan.