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Health and Millennium Development Goal 1: Reducing Out-of-pocket Expenditures to Reduce Income Poverty - Evidence from India

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  • Charu C. Garg

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  • Anup Karan
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    Abstract

    The first of the eight Millennium Development Goals is to halve extreme poverty and hunger by 2015. In India, thirty two and a half million people fall below the national poverty line by making out-of- pocket payments for health care in a single year. This paper shows how in a country with large out of pocket payments, targeting a few poor states, rural areas and urban poor could drastically bring down the number of people falling below the poverty line and also reduce the poverty deepening effect for those already below the poverty line. High expenditures on drugs are shown to be one of the main reasons for high out of pocket payments. Improved drug availability in public facilities and totally subsidizing the urban poor and rural areas are required for reducing the poverty impact of out of pocket payments. [EQUITAP WP No. 15].

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    Bibliographic Info

    Paper provided by eSocialSciences in its series Working Papers with number id:1378.

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    Date of creation: Feb 2008
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    Handle: RePEc:ess:wpaper:id:1378

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    Related research

    Keywords: out of pocket payments; urban poor; poor state; Poverty; health care payments; Millennium Development Goals; Equity; India; line; country;

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    1. Adam Wagstaff & Eddy van Doorslaer, 2003. "Catastrophe and impoverishment in paying for health care: with applications to Vietnam 1993-1998," Health Economics, John Wiley & Sons, Ltd., vol. 12(11), pages 921-933.
    2. Musgrove, Philip, 1999. "Public spending on health care: how are different criteria related?," Health Policy, Elsevier, Elsevier, vol. 47(3), pages 207-223, May.
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