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

Author

Listed:
  • Sekhar Bonu

    (Asian Development Bank)

  • Indu Bhushan

    (Asian Development Bank)

  • David Peters

    (Johns Hopkins Bloomberg School of Public Health)

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.

Suggested Citation

  • Sekhar Bonu & Indu Bhushan & David Peters, 2007. "Incidence, Intensity, and Correlates of Catastrophic Out-of-Pocket Health Payments in India," ADB Economics Working Paper Series 102, Asian Development Bank.
    • Handle: RePEc:ris:adbewp:0102
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    References listed on IDEAS

    as
    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, November.
    2. Robert Chambers & Deepa Narayan & Meera K. Shah & Patti Petesch, 2000. "Voices of the Poor : Crying Out for Change," World Bank Publications - Books, The World Bank Group, number 13848, April.
    3. Krishna, Anirudh, 2004. "Escaping Poverty and Becoming Poor: Who Gains, Who Loses, and Why?," World Development, Elsevier, vol. 32(1), pages 121-136, January.
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    Keywords

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    JEL classification:

    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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