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Assessing the Distribution of Household Financial Contribution to Health System: A Case Study of Iran

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Listed:
  • Amir Fazaeli
  • Mohmmad Hadian
  • Aziz Rezapour
  • Ali Fazaeli

Abstract

BACKGROUND- Throughout the world, financing the healthcare system through households' financial contribution is a challenging issue in evaluating performance of healthcare systems. The purpose of this paper is illustrating the consequences of Iranian household to health system financial contribution in terms of burden and incomes approaches.METHOD- The Data derived from an annual survey by Statistics Center of Iran (SCI) on expenditure-income of 36,551 households in 2012 was used to analyze countrywide distribution indicators of households' medical expenses by measuring indices of Income and burden approaches based on World Health Organization (WHO) and World Bank recommended methodologies.RESULTS- The fairness in financial contribution index was 0.85 and 0.82, and the income redistributive effect index was 0.54 and 0.3 in urban and rural areas, respectively. The fairness in financial contribution index was found 0.84 and 0.83 and the income redistributive effect index was 0.48 and 0.25 for households with and without medical insurance, respectively.The percentages of household with catastrophic health payments were 2.4% and 4% and the change in the number of household falling below the poverty line due to health system payments was 0.4% and 2% in urban and rural areas, respectively. The percentages of household with catastrophic health payments were 2.8% and 3% and the change in the number of household falling below the poverty line due to health system payments was 0.008 and 0.011 for households with and without medical insurance, respectively.CONCLUSION- Distribution indicators of medical expenses were more favorable in urban areas compared to rural areas and Medical insurance has declined impoverishment risks and number of people suffered due to catastrophic health expenditure. In addition, the result showed that there are different approaches for analyzing the distribution of out of pocket payments which used to complement each other in respect of formulation and development policy making in health system.

Suggested Citation

  • Amir Fazaeli & Mohmmad Hadian & Aziz Rezapour & Ali Fazaeli, 2016. "Assessing the Distribution of Household Financial Contribution to Health System: A Case Study of Iran," Global Journal of Health Science, Canadian Center of Science and Education, vol. 8(10), pages 233-233, October.
    • Handle: RePEc:ibn:gjhsjl:v:8:y:2016:i:10:p:233
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    References listed on IDEAS

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    1. Owen O'Donnell & Eddy van Doorslaer & Adam Wagstaff & Magnus Lindelow, 2008. "Analyzing Health Equity Using Household Survey Data : A Guide to Techniques and Their Implementation," World Bank Publications - Books, The World Bank Group, number 6896, December.
    2. Mohammad Hajizadeh & Luke Connelly, 2010. "Equity of Health Care Financing in Iran: The Effect of Extending Health Insurance to the Uninsured," Oxford Development Studies, Taylor & Francis Journals, vol. 38(4), pages 461-476.
    3. Hajizadeh, Mohammad & Connelly, Luke B., 2009. "Equity of health care financing in Iran," MPRA Paper 14672, University Library of Munich, Germany.
    4. Somkotra, Tewarit & Lagrada, Leizel P., 2008. "Payments for health care and its effect on catastrophe and impoverishment: Experience from the transition to Universal Coverage in Thailand," Social Science & Medicine, Elsevier, vol. 67(12), pages 2027-2035, December.
    5. Christopher Murray, 2006. "Health Systems Performance Assessment," Monograph 000270, Office of Health Economics.
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    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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