Health Insurance Based on Credit Card in Financial Institutions for Developing Countries: Challenges and Opportunities

Md. Ziaur Rahman; Md. Shafiul Alam Bhuiyan

doi:10.70062/globalhealth.v1i3.18

Authors

Md. Ziaur Rahman United International University
Md. Shafiul Alam Bhuiyan United International University

DOI:

https://doi.org/10.70062/globalhealth.v1i3.18

Keywords:

Health insurance, credit card, financial institutions, developing countries, challenges, opportunities

Abstract

In developing countries, access to health insurance remains a critical challenge, with large segments of the population unable to afford adequate coverage. One potential solution is integrating health insurance with financial institutions, particularly through credit cards, offering a convenient and accessible method for individuals to manage health expenditures. Credit cards can open a new horizon to make healthcare affordable, convenient, competitive and important in improving service quality. Act as innovative tools to innovate and introduce financial institutions.This paper explores the concept of health insurance linked to credit cards, examining its viability in developing countries. We investigate the potential benefits, such as increased healthcare accessibility and financial inclusion, alongside challenges like limited financial literacy, regulatory barriers, and credit risks for low-income populations. Additionally, this paper highlights opportunities for financial institutions to partner with healthcare providers, expanding access through innovative models. Through case studies and analysis, we identify key success factors and propose a framework for effective implementation. The findings suggest that credit card-based health insurance has the potential to significantly improve healthcare access in developing countries, provided that regulatory, technological, and socio-economic challenges are adequately addressed.

References

Agrawal, P. (2020). Creditworthiness and access to healthcare financing in LMICs. International Journal of Health Finance and Economics, 14(2), 133–150.

Aker, J., & Ksoll, C. (2021). Financial literacy and healthcare financing: Lessons from developing countries. Journal of Public Health Finance, 13(3), 91–112.

Ayyagari, J., Demirgüç-Kunt, M., & Maksimovic, V. (2021a). Credit access in developing countries: Financial inclusion and healthcare. Journal of Financial Inclusion, 9(3), 151–173.

Ayyagari, J., Demirgüç-Kunt, M., & Maksimovic, V. (2021b). Formal versus informal financing in developing countries. Journal of Financial and Quantitative Analysis, 50(3), 881–906.

Bastos, R. (2020). The role of financial institutions in scaling up health insurance. Journal of Health Economics, 13(4), 210–228.

Chitkara, B. M. (2022). Credit cards and health insurance: A new frontier for financial inclusion. International Journal of Financial Services, 9(2), 89–104.

Churchill, M. R. (2019). Microinsurance: Principles and practices in low-income countries. Journal of Insurance Development, 7(1), 45–61.

Francis, A. J. (2022). Healthcare infrastructure and insurance utilization in rural areas. Journal of Rural Health Policy, 19(2), 81–99.

Hosseini, M. A. (2022). Fintech and healthcare financing: Innovations for low-income populations. Journal of Digital Finance, 6(2), 87–104.

Klapper, T., & Singer, D. (2020). Expanding financial access: The role of banks in healthcare financing. Journal of Financial Inclusion, 11(2), 62–79.

Klapper, T., & Singer, D. (2022). Integrating health insurance with financial services: A case study of banks in developing countries. Journal of Health Economics, 12(1), 44–58.

Lee, D. K. (2022). Health financing through financial institutions: Opportunities for developing countries. Journal of Global Health Financing, 12(3), 23–34.

Mahapatra, S. (2021). Regulatory frameworks for healthcare financing in developing countries. International Journal of Health Policy, 22(1), 33–49.

Morduch, J. D. (2021). Credit markets and access to healthcare: Emerging trends in developing countries. Health Economics Review, 15(4), 113–128.

Nair, A. S. (2021). Credit and health: Exploring the integration of insurance into credit facilities. International Journal of Financial Inclusion, 15(2), 75–89.

Rahman, M. T. (2020). Challenges in health financing: The role of financial institutions in developing countries. Healthcare Economics Review, 18(4), 192–209.

Saksena, P., Hsu, A., & Evans, J. P. (2021). Health insurance in low- and middle-income countries: An analysis of challenges and opportunities. World Health Report, 5–20.

Sen, A., & Singh, B. N. (2020). Financial literacy and credit adoption: A study of low-income populations. Journal of Public Health Policy, 13(2), 99–118.

Sharma, R. (2021). Consumer protection in healthcare financing: Lessons from developing countries. Journal of Financial Regulation, 9(2), 67–86.

Singh, A. (2020). Cultural resistance to health insurance in low-income countries. Journal of Global Health Policy, 8(4), 221–237.

Singh, A. (2021). Mobile health insurance in low-income countries: A systematic review. Journal of Mobile Healthcare, 6(2), 71–88.

Smith, D. (2021). Using data analytics to improve health insurance offerings in developing countries. Journal of Health Data Science, 5(1), 41–58.

Wagstaff, A., & Lindelow, M. (2020). Are health shocks different? Evidence from a multi-country study. Economic Development and Cultural Change, 55(3), 441–466.

World Health Organization. (2020). Financial protection: Ensuring everyone can afford the health services they need. WHO. https://www.who.int/news-room/fact-sheets/detail/financial-protection

Wright, R. (2022). Microfinance institutions and healthcare: Extending insurance access to underserved populations. Journal of Microfinance and Development, 17(3), 22–36.

Yun, S. Y., & Lee, H. (2020). Private health insurance in developed countries: Exploring the role of credit cards in healthcare payments. International Journal of Health Systems, 18(3), 123–139.