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Purpose

A pooled health financing mechanism to cover medical care costs

A personal (or family) savings–credit account for health and related benefits

Who Uses It?

Community members enrolled into the fund

Individual clients and their family members

How It Works

Members contribute regularly (e.g., periodic premiums) to support future medical expenses

Individuals credit money into their own account, usable when they need services

Risk Sharing

Yes — risk is shared among all members; the fund covers care based on membership rules

No — funds are strictly the account owner’s; there’s no shared risk between members

Benefits

Designed to protect against high unexpected medical costs; may include hospitalization cover, preventive care incentives, etc.

Provides a way to prepay or save for upcoming or anticipated health services

Contribution Style

Collective contributions (often fixed periodic payments)

Flexible deposits made by the individual or family

Who Decides Use of Funds?

Fund governance (rules set by KT or managing body) typically defines what costs are covered

The account holder chooses how to spend their own saved money

Goal

Financial protection and increased access to health services for a group

Personal convenience and budgeting for health spending

Common Example

Community health insurance or mutual aid fund

Store-value account to pay for clinic visits, meds, and allied services