Private health insurance should be a very good solution for the poor inhabitants of developing countries, say researchers from the University of Pennsylvania.

Government is running many health programs, adopted by most developing nations, is proved inefficiencies that force many people to pay over half of their medical expenses out of pocket. For example

Virtually in all developing countries, out of pocket expenses exceed the U.S percentage of 13percent. That is for example, Bangladeshis paid 64 percent of their medical expenditure in 2002 out of their pocket expenses.

Poor people continue to contribute larger share of family income out of the pocket expenses.
The big insurance programs—which is normally free, universal and comprehensive provision of medical services—does fails some time due poverty.

From Ghana to the Philippines, poor countries train doctors and nurses who then alleviate shortages in Australia, North America and Europe, normally make more money.

Private health insurance may help reducing these burdens and can also alleviate some of the health expenses governments’ experience. Furthermore, poor families would save money because of the redistributed costs associated with private heath insurance, say the researchers.

Countries and regions currently using private insurance include:
Populations of the Caribbean, the Arabian Peninsula and parts of Latin America.
Zimbabweans and South Africans; these countries carries private insurance that cover more than a quarter of private spending on medical expenses.

Inspite of the fact that private health insurance offers more benefits more to families, policy maker continue to opt for social insurance programs and take preventative measures against private insurance companies, such as passing restrictive laws.