Medical expenditure and household welfare in Bangladesh

The reliance on heavy out-of-pocket (OOP) expenditure for medical care leads to households getting trapped into a vicious cycle of poverty. In Bangladesh, private health care expenditure accounts for almost 64% of total health expenditure being ﬁnanced from out-of-pocket (OOP). These escalating medi...

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Main Authors:	Zaman, Nabila, Hossain, Md. Shahadath
Format:	Working Paper
Sprog:	en_US
Udgivet:	BRAC Institute of Governance and Development (BIGD) 2022
Fag:	Catastrophic health event Health expenditure Health financing Welfare loss
Online adgang:	http://hdl.handle.net/10361/15878

id	10361-15878
record_format	dspace
spelling	10361-158782022-01-12T21:01:32Z Medical expenditure and household welfare in Bangladesh Zaman, Nabila Hossain, Md. Shahadath Catastrophic health event Health expenditure Health financing Welfare loss The reliance on heavy out-of-pocket (OOP) expenditure for medical care leads to households getting trapped into a vicious cycle of poverty. In Bangladesh, private health care expenditure accounts for almost 64% of total health expenditure being ﬁnanced from out-of-pocket (OOP). These escalating medical costs cause ﬁnancial hardship for a majority of households and may even lead to a welfare loss. Using household-level data from Household Income and Expenditure Survey-2010 and applying a log-linear regression estimation procedure, the study estimates the catastrophic impact of health expenditure on household welfare. Welfare loss is associated with a reduction of ‘food expenditure’ and ‘non-food expenditure’. The study ﬁnds that compared to households with no healthcare expenditure, households with non-catastrophic healthcare expenditure reduced food expenditure by 3.1% and households with catastrophic healthcare expenditure reduced food expenditure by 15.2%. Compared to households ﬁnancing healthcare from internal sources, households with external ﬁnancing reduced food and non-food expenditures by 5.57% and 1% respectively and households that ﬁnance healthcare from both internal and external sources reduced food and non-expenditures by 11.4% and 16% respectively. Our ﬁndings indicate that a catastrophic health event diverts household income to health care by a large amount (28.1%) which causes signiﬁcant reduction in non-food expenditure. eventually causing a substantial loss in household welfare. Catastrophic health events did not reduce food consumption signiﬁcantly but it has a signiﬁcant impact on non-food expenditure. Non-hospital medical expenses such as the cost of medicine was the primary cause of facing catastrophic health event. 2022-01-12T07:58:32Z 2022-01-12T07:58:32Z 2016 2016-10 Working Paper http://hdl.handle.net/10361/15878 en_US https://bigd.bracu.ac.bd/publications/medical-expenditure-and-household-welfare-in-bangladesh/ application/pdf BRAC Institute of Governance and Development (BIGD)
institution	Brac University
collection	Institutional Repository
language	en_US
topic	Catastrophic health event Health expenditure Health financing Welfare loss
spellingShingle	Catastrophic health event Health expenditure Health financing Welfare loss Zaman, Nabila Hossain, Md. Shahadath Medical expenditure and household welfare in Bangladesh
description	The reliance on heavy out-of-pocket (OOP) expenditure for medical care leads to households getting trapped into a vicious cycle of poverty. In Bangladesh, private health care expenditure accounts for almost 64% of total health expenditure being ﬁnanced from out-of-pocket (OOP). These escalating medical costs cause ﬁnancial hardship for a majority of households and may even lead to a welfare loss. Using household-level data from Household Income and Expenditure Survey-2010 and applying a log-linear regression estimation procedure, the study estimates the catastrophic impact of health expenditure on household welfare. Welfare loss is associated with a reduction of ‘food expenditure’ and ‘non-food expenditure’. The study ﬁnds that compared to households with no healthcare expenditure, households with non-catastrophic healthcare expenditure reduced food expenditure by 3.1% and households with catastrophic healthcare expenditure reduced food expenditure by 15.2%. Compared to households ﬁnancing healthcare from internal sources, households with external ﬁnancing reduced food and non-food expenditures by 5.57% and 1% respectively and households that ﬁnance healthcare from both internal and external sources reduced food and non-expenditures by 11.4% and 16% respectively. Our ﬁndings indicate that a catastrophic health event diverts household income to health care by a large amount (28.1%) which causes signiﬁcant reduction in non-food expenditure. eventually causing a substantial loss in household welfare. Catastrophic health events did not reduce food consumption signiﬁcantly but it has a signiﬁcant impact on non-food expenditure. Non-hospital medical expenses such as the cost of medicine was the primary cause of facing catastrophic health event.
format	Working Paper
author	Zaman, Nabila Hossain, Md. Shahadath
author_facet	Zaman, Nabila Hossain, Md. Shahadath
author_sort	Zaman, Nabila
title	Medical expenditure and household welfare in Bangladesh
title_short	Medical expenditure and household welfare in Bangladesh
title_full	Medical expenditure and household welfare in Bangladesh
title_fullStr	Medical expenditure and household welfare in Bangladesh
title_full_unstemmed	Medical expenditure and household welfare in Bangladesh
title_sort	medical expenditure and household welfare in bangladesh
publisher	BRAC Institute of Governance and Development (BIGD)
publishDate	2022
url	http://hdl.handle.net/10361/15878
work_keys_str_mv	AT zamannabila medicalexpenditureandhouseholdwelfareinbangladesh AT hossainmdshahadath medicalexpenditureandhouseholdwelfareinbangladesh
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Medical expenditure and household welfare in Bangladesh

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