Health and Microfinance: Leveraging the Strengths of Two Sectors to Alleviate Poverty

Freedom from Hunger Research Paper No. 9 examines the impact of the Microfinance and Health Protection (MAHP) initiative launched by Freedom from Hunger in 2006 to test the feasibility and impact of adding health interventions to financial services. Five MFIs from Bénin, Bolivia, Burkina Faso, India, and the Philippines participated in the project. MAHP provided health services such as education, health-financing, linkages to health providers, and the sale of health products in rural communities. Study results confirmed a significant burden of ill health on clients and helped to understand their health access issues and coping strategies. Findings include:

• Clients wanted health services and financing products that would work together to improve access to health care;
• Three main barriers to health were insufficient knowledge, inadequate access, and inability to afford health services;
• Health related interventions led to positive benefits at the individual and household levels, including increased health knowledge and reduced financial barriers to health care;
• MFIs can offer large distribution networks to provide services to improve both health and financial security;
• Linkages with MFIs offer health-care providers and microinsurers feasible and low-cost delivery channels to reach remote areas.