Health and Microfinance:

Leveraging the Strengths of

Two Sectors to Improve
Food Security

InterAction BPI Luncheon, 14 December, 2010

Microfinance as a Platform
 PADME (Benin) CRECER (Bolivia)
Cohesive • Health education • Health education
Microfinance • Health product • Mobile doctors
+ distribution • Health loans
Health
Packages

RCPB (Burkina Faso) CARD (Philippines) Bandhan (India)

• Health education • Health education • Health education
• Health savings • Health micro- • Health loans
• Health loans insurance loans
• Health product
• Linkages to distribution
health providers
• Linkages to
• Affordable drugs health providers
 Product-Specific Outreach
December 2009
MFI Health Health Health Loans Health Micro- Provider Product Total MAHP % of Total MFI
Education Savings insurance Linkages Distribution Clients

Bandhan 51,900 0 1,932 0 51,900 51,900 51,900 3%

(India)

CARD 152,424 0 0 13,651 138,774 0 152,424 16%

(Philippines)

CRECER 26,296 0 256 0 23,900 0 26,296 26%

(Bolivia)

PADME 11,290 0 0 0 0 4,023 11,290 23%

(Benin)

RCPB 47,107 12,099 84 0 0 0 59,746 9%

(Burkina
Faso)

TOTAL 289,017 12,099 2,272 13,651 214,574 55,923 301,656 8%

 Examples of Client Benefits
Improved Health Behaviors

INDIA (Education, loans, health products) BASELINE FOLLOW-UP

Breastfed child within one hour of birth 61% 96%*

Treated children with diarrhea with ORS 60% 88%*

Complementary feeding of children at 6 months or older 39% 55%*

PHILIPPINES (Education, health microinsurance,

provider network)

Put money aside to prepare themselves for a future illness 79% 92%*

Report exhibiting strong negotiation skills (for negotiating with

55% 69%*
health care providers)

* Statistically significant at P<.05 or less

Improved Access/Use of Health Services and
Products
INDIA (Education, loans, health products) Clients referred

Children with diarrhea (in past 3 months) 81%

Pregnancy and ante-natal care 88%

WITHOUT WITH
BURKINA FASO (Education, savings, loans) Health package Health Package

Used preventive services in last 30 days 9% 24%*

BASELINE FOLLOW-UP
BOLIVIA (Education, loans, mobile medical providers) (N=240) (N=247)

Clients seeking preventive care for themselves and additional

1.5% 9.8%*
family members (2)
24% of Health Fair participants had never visited a medical provider before.

* Statistically significant at P<.05 or less

 Improved Financial Protection and Security
BOLIVIA

• Clients with health loans 12 percentage points less likely to use current loan for health
expenses compared to their first loan. (17.1 to 4.9%)

BURKINA FASO
• Clients with access to health benefits were more confident in their ability to pay
and save for future health care expenses*
INDIA
• 33% of clients who had used loans would have delayed treatment without the loan
• 62% felt they were able to afford other necessities (food, education, etc.)
PHILIPPINES (Education, health microinsurance, provider network)

• 88% of clients with insurance reported that insurance helped a lot

• 97% agreed that insurance provides protection from health emergencies

* Statistically significant at P<.05 or less

 Low Cost

NET ANNUAL COST PER CLIENT

MAHP Products Analyzed (2008-2009) Direct Direct and

Costs Only Allocated
Costs
CARD – Microinsurance loans 0.19 (0.57)
RCPB – Health savings and loans (0.03) (4.57)
CARD – Preferred provider program (0.10) (0.17)
CRECER – Health days (mobile providers) (0.52) (0.88)
Bandhan – Health education and health products (1.00) (1.73)

AVERAGE (0.29) (1.59)

Indirect benefits

• Client growth and retention

• Increased loan sizes

• Staff morale

• Quantifiable social benefit to

clients and communities
exceeds the cost of offering
the product
Linking health and microfinance – Quadruple win
• Low cost or even marginal profits
• Competitive advantage
MFI • Healthier, financially stabler clients
• Social mission achievement

• Improved health care knowledge and behaviors

MFI Clients and • More access to health providers and products
Families • Greater financial protection and choice
• Enhanced ability to use MFI loans and to save

• Opportunity to reach larger segment of population

Health Care • Increase market share
Providers • More dependable income flow

• Lower instance of and spending on illness

Community • Healthier, more productive communities
What Have We Learned? (technical lessons)

1. MFIs can develop and offer meaningful health protection

products practically, sustainably and at significant scale.

2. Health protection products can have a positive impact on

clients’ health and financial status.

3. These products can be offered at no or low cost to MFIs;

indirect benefits such as client attraction and retention, and
net social value creation, may mean that low-cost products do
ultimately “pay for themselves”.
 Advancing cross-sectoral solutions

• Support for replication of successful innovations and

systematization of methods

• More experimentation, evaluation, and documentation of

impact

• New space and opportunity for convening and collaboration

of practitioners from MFI and Global Health sectors
www.freedomfromhunger.org
www.ffhtechnical.org