Incidence, Intensity, and Correlates of Catastrophic Out-of-Pocket Health Payments in India

Sekhar Bonu (), Indu Bhushan () and David Peters
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Sekhar Bonu: Asian Development Bank
Indu Bhushan: Asian Development Bank
David Peters: Johns Hopkins Bloomberg School of Public Health

No 102, ADB Economics Working Paper Series from Asian Development Bank

Abstract: This study investigates the incidence, intensity, and correlates of catastrophic health payments in India. The paper confirms the continuing high incidence of catastrophic health payments and increase in poverty headcount and poverty gap due to health payments. Despite India’s remarkable economic growth, catastrophic health spending remains a major cause of poverty. Using bivariate analysis and Heckman sample selection and multinomial logistic regression for multivariate regression analysis, the paper finds that health payments were 4.6% of total household expenditure and 9.7% of household nonfood expenditure. Poverty headcount increased from 27.5% to 31.0% due to health payments, which translates to 39.5 million people falling below the poverty line due to health payments. It is important for India to develop effective risk pooling arrangements for health care.

Keywords: catastrophic health payments; economic growth; India; poverty; risk pooling (search for similar items in EconPapers)
JEL-codes: I13 I18 O15 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2007-10-01
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0102

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