Abstract:
Improvements in health closely follow improvements in education as a contributing factor to development and economic growth. Better health in the population will enable workers to put forward greater effort and maintain their efficiency for longer periods. In order to keep citizens healthy and good workforces, many countries in the world have health care financing through social health compulsory and voluntary health insurance systems. But, people must be motivated and have the incentive to accept and pay for Social Health Insurance (SHI) even in compulsory systems. This study analyzed the factors influencing formal sector workers‟ willingness to pay (WTP) for the Ethiopian compulsory Social Health Insurance (SHI) scheme (3% payroll), among Addis Ababa government Elementary and Secondary School teachers. Data were collected from 294 respondents using the multi-stage sampling procedures. Data were analyzed with descriptive statistics and Logistic Regression. General results showed that majority of the respondents, 65 percent were not willing to pay the 3% payroll of the SHI scheme set by the government. Factors like, age, sex, income, awareness and experiences of individuals‟ out of pocket expense during sudden sickness have been analyzed with the dependent variables willingness to pay the compulsory contribution of the SHI scheme.