EMPLOYERS WILLINGNESS-TO-PAY - THE CASE FOR COMPULSORY HEALTH-INSURANCE IN TANZANIA

This article documents employers' expenditure on the arrangements for the health care of their employees in one of the least developed count ries; Tanzania. The case for compulsory health insurance is considered in the light of the fact that only 3% of the population is employed i n the formal sector and could be covered at first. It is shown from a survey of larger employers, outside government, that they were spendin g on average 11% of payroll on health care for their employees. This d emonstrated their lack of satisfaction with the government health serv ices. Nevertheless, those who could readily be covered by insurance we re making considerable use of the more expensive government hospital s ervices. It is argued that a compulsory health insurance scheme could be introduced for the formal sector of employment which would cover a wider range of health services at lower cost. The scheme would also ha ve the desirable economic effect of lowering employers' labour costs w hile making it possible to improve the standards of the government hea lth services.