The purpose of this article is to provide a technical discussion of capital loading that quot;micro health insurance unitsquot; (MIUs) must add to the premium to maintain financial sustainability. MIUs offer benefit packages and require prepayment, that is, they create a rudimentary...

Micro health insurance units (MIUs) reduce negative financial consequences of healthcare costs for people who cannot access to formal and affordable health insurance. In order to survive, MIUs need capital to cover their outlier costs (whose probability of occurring is low but not zero). The...