Catastrophic and impoverishing out-of-pocket health expenditure in Ethiopia: evidence from the Ethiopia socioeconomic survey

Yamlak Bereket Tadiwos (), Meseret Molla Kassahun () and Anagaw Derseh Mebratie
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Yamlak Bereket Tadiwos: College of Health Science, Addis Ababa University
Meseret Molla Kassahun: College of Health Science, Addis Ababa University
Anagaw Derseh Mebratie: College of Health Science, Addis Ababa University

Health Economics Review, 2025, vol. 15, issue 1, 1-13

Abstract: Abstract Background Out-of-pocket payment remains one of the ways to finance health care in Ethiopia accounting 31%. These out-of-pocket health expense leads citizens’ face catastrophic and impoverishing expenditure. The most recent survey-based study of catastrophic and impoverishing health expenditure was done from the 2015/16 consumption and expenditure survey with finding of 2.1% and 1% respectively. Objective To assess catastrophic and impoverishing out-of-pocket health expenditure and the determinant factors of catastrophic health expenditure in Ethiopia, 2023 from the 2018/19 socioeconomic survey. Methodology A secondary data from Ethiopian socioeconomic survey 2018/19 conducted by Ethiopia’s Central Statistical Agency and World Bank was used to assess the catastrophic and impoverishing health expenditure at the national and subnational level by the Wagstaff and Van Doorslaer and Xu et al. methodology. Then binary logistic regression was computed by the STATA (ver.12) software to assess the determinant factors of catastrophic health expenditure. Result From 6770 households 1.49% and 0.89% of them in Ethiopia faced catastrophic and impoverishing health expenditure respectively at 10% threshold level and households having a member with more facility visit had increased likelihood of facing catastrophic health expenditure (AOR = 2.45, 95%CI; 1.6—3.8) and also having member being hospitalized in the household had increased odds of facing catastrophic health expenditure (Adjusted odds ratio, AOR = 1.9, 95% confidence interval, CI; 1.19- 3.16). On the contrary, there is a decreased likelihood of facing catastrophic health expenditure among those who were insured for health (AOR = 0.58, 95%CI; 0.35- 0.97) and was in the richest consumption quintile group (AOR = 0.6, 95%CI; 0.47- 0.65). Conclusion and recommendation The finding indicates that there are still notable households facing catastrophic and impoverishing out-of-pocket health expenditure in Ethiopia especially in the lower consumption quintiles indicating inequity. In addition it is found that those with health insurance coverage, lower hospitalization and health service utilization had lower chance of facing catastrophic health payment. So it is suggested that activities that reduce hospitalization rate, increase insurance coverage and addressing the poor must be in place so that the catastrophic health cost incurred can be lowered at national level.

Keywords: Out-of-pocket expenditure; Catastrophic health expenditure; Impoverishing health expenditure (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1186/s13561-025-00602-1

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