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Use of healthcare services is inadequate in Ethiopia in spite of the highburden of diseases. User-fee charges are the most important factor for thisdeficiency in healthcare utilization. Hence, the country is introducingcommunity based and social health insurances since 2010 to tackle suchproblems. This study was conducted cross-sectionally, in March 2013, to assesswillingness of rural households to pay for community-based health insurance inDebub Bench district of Southwest Ethiopia. Two-stage sampling technique wasused to select 845 households. Selected households were contacted using simplerandom sampling technique. Double bounded dichotomous choice method was used toillicit the willingness to pay. Data were analyzed with STATA 11. Krinsky andRob method was used to calculate the mean/median with 95% CI willingness to payafter the predictors have been estimated using Seemingly Unrelated BivariateProbit Regression. Eight hundred and eight (95.6%) of the sampled householdswere interviewed. Among them 629(77.8%) households were willing to join theproposed CBHI scheme. About 54% of the households in the district were willingto pay either the initial or second bids presented. On average, thesehouseholds were willingness to pay was 162.61 Birr per household (8.9 US$)annually. If the community based health insurance is rolled out in thedistrict, about half of households will contribute 163 Birr (8.9 US$) annually.If the premium exceeds the amount specified, majority of the households wouldnot join the scheme. Key words: community based health insurance, willingnessto pay, contingent valuation method, double bounded dichotomous choice, Krinskyand Robb, rural households, Ethiopia.

Willingness to Pay for Community-Based Health Insurance among Rural Households of Southwest Ethiopia