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Out-of-pocket Expenditure on Health Care Among Elderly and Non-elderly Households in India

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  • Sanjay Mohanty
  • Rajesh Chauhan
  • Sumit Mazumdar
  • Akanksha Srivastava

Abstract

Using the consumption expenditure data, National Sample Survey, 2009–2010, this paper test the hypothesis that the monthly per capita household health spending of elderly households is significantly higher than non-elderly households in India. The households are classified into three mutually exclusive groups; households with only elderly members (elderly households), households with elderly and non-elderly members and households without any elderly member. The health spending include the institutional (hospitalization) and non-institutional health expenditure of the households, standardized for 30 days. Descriptive statistics and a two part model are used to understand the differentials in health expenditures across households. Results indicate that the monthly per capita health spending increases with economic status, occupation, age and educational attainment of the head of the household. The monthly per capita health spending of elderly households is 3.8 times higher than that of non-elderly households. While the health spending accounts 13 % of total consumption expenditure for elderly households, it was 7 % among households with elderly and non-elderly members, and 5 % among non-elderly households. Controlling for socio-economic and demographic correlates, the per-capita household health spending among elderly households and among household with elderly and non-elderly members was significantly higher than non-elderly households. The health expenditure is catastrophic for poorer households, casual labourer and households with elderly members. Based on the finding we suggest to increased access to health insurance and public spending on geriatric care to reduce the out-of-pocket expenditure on health care in India. Copyright Springer Science+Business Media Dordrecht 2014

Suggested Citation

  • Sanjay Mohanty & Rajesh Chauhan & Sumit Mazumdar & Akanksha Srivastava, 2014. "Out-of-pocket Expenditure on Health Care Among Elderly and Non-elderly Households in India," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 115(3), pages 1137-1157, February.
  • Handle: RePEc:spr:soinre:v:115:y:2014:i:3:p:1137-1157
    DOI: 10.1007/s11205-013-0261-7
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    4. Rajat Deb & Tapash Paul & Jaharlal Debbarma & Kiran Sankar Chakraborty, 2020. "Breaking the Stigma of Health Insurance," Management and Labour Studies, XLRI Jamshedpur, School of Business Management & Human Resources, vol. 45(1), pages 54-84, February.
    5. Herberholz, Chantal & Phuntsho, Sonam, 2021. "Medical, transportation and spiritual out-of-pocket health expenditure on outpatient and inpatient visits in Bhutan," Social Science & Medicine, Elsevier, vol. 273(C).
    6. Maksimović, Goran & Jović, Srđan & Jovanović, Radomir & Aničić, Obrad, 2017. "Management of health care expenditure by soft computing methodology," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 465(C), pages 370-373.

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