Factors Affecting Health Insurance Adoption and Awareness in Uttar Pradesh, India: A Comprehensive Analysis

Abstract

Objective: This study aims to investigate the significance of health insurance in the context of India's growing population, with a particular focus on Uttar Pradesh, the country's most populous state. By examining various factors, such as the cost of health insurance in relation to its perceived benefits, the study seeks to understand the drivers behind health insurance uptake in the state. The importance of health insurance is underscored by the high cost of quality healthcare and the prevalent lack of awareness regarding its benefits. This paper emphasizes the need for health insurance and explores the reasons behind individuals' reluctance to prioritize its benefits over short-term gains. Methods: A mixed-methods approach was employed in this study. Quantitative data was collected to gauge the impact of cost on health insurance adoption and to assess how an individual's income influences their perception of health insurance. Surveys using Google Forms were administered in urban areas to obtain numerical data reflecting the general population's views on the current situation and their willingness to purchase health insurance. The sample comprised 402 respondents from Uttar Pradesh, representing diverse age groups, social backgrounds, and income levels. Data from the National Family Health Survey and the National Sample Survey Office were used as reference points to determine the prevalence of insurance uptake and to evaluate the representativeness of the sample. Results: The findings suggest that the cost factor, specifically the cost of health insurance premiums and the longterm returns they offer, remains the primary determinant of health insurance adoption. Practical Implications: This research underscores the importance of health insurance in the Indian society and identifies the factors influencing individuals' decisions to purchase a policy. Furthermore, the study proposes that making health insurance more affordable and raising awareness among the population could address the issue of low uptake. Consequently, this work aims to heighten awareness of health insurance's importance among Uttar Pradesh residents and recommend that policy makers implement strategies to make it more accessible, thereby influencing public behavior.