Ascertaining the Financial Cost of Malaria and Mitigating against It Using Actuarial Models for Financial Cost

The cost of malaria treatment is crippling Ghana's health budget. Malaria slows down economic growth and if not checked, it can erode the National Health Insurance Fund (NHIF). The cost of treating malaria in 2008 was US $772.4 million. This amount is equal to Ghana's entire health budget for 2008, which represents 10% of the country's entire Gross Domestic Product for 2006 (MOH Report - Quashigah, 2008). The financial cost of malaria treatment and its cost mitigation in Ghana is determined using actuarial models and a health scheme which also mitigates the cost of malaria is postulated. The KNUST hospital is the case study for obtaining the treatment cost of malaria. This study involves estimates of morbidity and mortality rates for malaria. Furthermore, a premium formula is developed using the cost data obtained from the hospital and the premium formula. Premium rates are calculated for the different scheme members, based on some predetermined factors. Ultimately recommendations have been made about how this proposed scheme can be incorporated into the current National Health Insurance Scheme (NHIS).