Assessing the Role of Insurance in Financing Healthcare Expenditure in Nigeria

This study assesses the role of health insurance in financing healthcare expenditure and reducing catastrophic health spending among Nigerian households, using nationally representative survey data from the 2022 National Living Standards Survey (NLSS) conducted by the National Bureau of Statistics. Catastrophic health expenditure, defined as out-of-pocket health spending exceeding ten percent of household consumption, is a significant driver of poverty transitions in Nigeria, where formal health insurance coverage remains below five percent of the population. The study employs a quantitative analytical design applying logistic regression and propensity score matching to assess the difference in catastrophic health expenditure incidence between insured and uninsured households after controlling for income, household size, geographic location, and chronic illness burden. Healthcare financing channels including NHIS, employer-provided health insurance, and community-based health insurance schemes are disaggregated in the analysis. Preliminary findings are expected to confirm that health-insured households have significantly lower catastrophic expenditure incidence, with the largest protective effects concentrated among low-to-middle income quintiles. The study contributes empirical evidence on health insurance's poverty-protective function in Nigeria and recommends universal health insurance as a component of Nigeria's social protection architecture. Keywords: Health Insurance, Catastrophic Health Expenditure, Nigeria, Healthcare Financing, Propensity Score Matching.