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Cost and Value of Health Care in Cyprus


  • Maria Andreou

    (Economics Research Centre, University of Cyprus)

  • Panos Pashardes

    (Department of Economics and Economics Research Centre, University of Cyprus)

  • Nicoletta Pashourtidou

    () (Economics Research Centre, University of Cyprus)


This paper presents some facts about aggregate health expenditure and analyses factors affecting the level of household health expenditure in Cyprus, with emphasis on the type of cover of household members. The implications of individuals’ entitlement to free public care for the well-being of households are also investigated to determine the value of free medical care, as perceived by consumers. We find that the age of household head and household income play a key role in determining the level of health expenditure. In particular, household spending on medical care decreases with the age of household head up to 40 years and increases for older heads. As income increase so does health expenditure but at a declining rate. Medical expenditure also varies with the type of cover of the head and members of the household. Additional household members create economies of scale in health expenditure when members are covered by public/government, private employer or a combination of medical cover schemes. The well-being analysis shows that the provision of public health care in Cyprus mostly benefits poor households and those with older heads, in the sense that they enjoy a reduction in their total household health expenditure due to eligibility to freely provided public health care.

Suggested Citation

  • Maria Andreou & Panos Pashardes & Nicoletta Pashourtidou, 2010. "Cost and Value of Health Care in Cyprus," Cyprus Economic Policy Review, University of Cyprus, Economics Research Centre, vol. 4(1), pages 3-24, June.
  • Handle: RePEc:erc:cypepr:v:4:y:2010:i:1:p:3-24

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    References listed on IDEAS

    1. Di Matteo, Livio, 2000. "The determinants of the public-private mix in Canadian health care expenditures: 1975-1996," Health Policy, Elsevier, vol. 52(2), pages 87-112, June.
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    Cited by:

    1. Cylus, Jonathan & Papanicolas, Irene & Constantinou, Elisavet & Theodorou, Mamas, 2013. "Moving forward: Lessons for Cyprus as it implements its health insurance scheme," Health Policy, Elsevier, vol. 110(1), pages 1-5.
    2. Petrou, Panagiotis & Vandoros, Sotiris, 2015. "Cyprus in crisis: Recent changes in the pharmaceutical market and options for further reforms without sacrificing access to or quality of treatment," Health Policy, Elsevier, vol. 119(5), pages 563-568.


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