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Relationship between catastrophic health expenditures and household incomes and expenditure patterns in South Korea

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  • Kim, Younhee
  • Yang, Bongmin

Abstract

Objectives The compositions of health expenditures by households in South Korea with and without catastrophic health expenditures were compared. Also, relationships between catastrophic health expenditures and household incomes, and between such health expenditures and expenditure patterns were explored.Methods Data from the 2006 South Korean Household Income & Expenditure Survey, a representative survey of 90,696 households were analyzed. We used a double-hurdle model to assess each income source and expenditure category. The independent variable was the presence of catastrophic health expenditure.Results After adjusting for household characteristics, the results showed that earned, business, and property incomes were significantly lower, but transfer and loan incomes were significantly higher in households with catastrophic health expenditures than in those without such health expenditures. All consumption categories, other than health expenditure, were significantly lower in households with catastrophic health expenditures than in those without catastrophic health expenditures. This suggests that households with catastrophic health expenditures faced challenges in offset by the potentially excessive health expenditure and may have been obliged to reduce consumption of other items.Conclusions The expansion of insurance coverage and lowering of out-of-pocket rates in the South Korean Health Insurance benefits could be a necessary first step in protecting households from the occurrence of health related economic catastrophes.

Suggested Citation

  • Kim, Younhee & Yang, Bongmin, 2011. "Relationship between catastrophic health expenditures and household incomes and expenditure patterns in South Korea," Health Policy, Elsevier, vol. 100(2-3), pages 239-246, May.
  • Handle: RePEc:eee:hepoli:v:100:y:2011:i:2-3:p:239-246
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    Cited by:

    1. Okorie, David Iheke & Lin, Boqiang, 2022. "Association of energy poverty and catastrophic health expenditure," Energy, Elsevier, vol. 253(C).
    2. Ebaidalla Mahjoub Ebaidalla & Mohammed Elhaj Mustafa Ali, 2017. "Determinants and Impact of Households’s Out-of-Pocket Health Care Expenditure in Sudan: Evidence From Urban and Rural Population," Working Papers 1170, Economic Research Forum, revised 12 2017.
    3. Bukari, Chei & Broermann, Shanaz & Okai, Davidson, 2021. "Energy poverty and health expenditure: Evidence from Ghana," Energy Economics, Elsevier, vol. 103(C).
    4. So-Yun Kim & Gong-Soog Hong, 2015. "Catastrophic Health Expenditures and Life Satisfaction: A Case in South Korea," Journal of Family and Economic Issues, Springer, vol. 36(3), pages 369-382, September.
    5. Syeda Anam Fatima Rizvi, 2021. "Household Catastrophic Health Expenditures and its Determinants in Pakistan," Post-Print hal-03341700, HAL.
    6. Hongjo Choi & Haejoo Chung & Carles Muntaner, 2019. "Social selection in historical time: The case of tuberculosis in South Korea after the East Asian financial crisis," PLOS ONE, Public Library of Science, vol. 14(5), pages 1-13, May.
    7. Axel Demenet, 2016. "Health Shocks and Permanent Income Loss: the Household Business Channel," Working Papers DT/2016/11, DIAL (Développement, Institutions et Mondialisation).
    8. Jang, Sung-In & Yi, Sang-Wook & Sull, Jae-Woong & Park, Eun-Cheol & Kim, Jae-Hyun & Ohrr, Heechoul, 2015. "Association between all-cause mortality and insurance status transition among the elderly population in a rural area in Korea: Kangwha Cohort Study," Health Policy, Elsevier, vol. 119(5), pages 680-687.
    9. Kane, Sumit & Joshi, Madhura & Mahal, Ajay & McPake, Barbara, 2023. "How social norms and values shape household healthcare expenditures and resource allocation: Insights from India," Social Science & Medicine, Elsevier, vol. 336(C).
    10. Kim, Chang-O & Joung, Won Oh, 2014. "Effect of the Crisis Assistance Program on poverty transition for seriously ill people in South Korea: A quasi-experimental study," Social Science & Medicine, Elsevier, vol. 101(C), pages 28-35.
    11. Hwa-Young Lee & Naoki Kondo & Juhwan Oh, 2018. "Medical expenditure and unmet need of the pre-elderly and the elderly according to job status in Korea: Are the elderly indeed most vulnerable?," PLOS ONE, Public Library of Science, vol. 13(3), pages 1-12, March.
    12. Carlo Eduardo Medina-Solís & Leticia Ávila-Burgos & María de Lourdes Márquez-Corona & June Janette Medina-Solís & Salvador Eduardo Lucas-Rincón & Socorro Aida Borges-Yañez & Miguel Ángel Fernández-Bar, 2019. "Out-Of-Pocket Expenditures on Dental Care for Schoolchildren Aged 6 to 12 Years: A Cross-Sectional Estimate in a Less-Developed Country Setting," IJERPH, MDPI, vol. 16(11), pages 1-17, June.
    13. Xiangyu Sun & Eduardo Bernabé & Xuenan Liu & Jennifer Elizabeth Gallagher & Shuguo Zheng, 2016. "Determinants of Catastrophic Dental Health Expenditure in China," PLOS ONE, Public Library of Science, vol. 11(12), pages 1-12, December.
    14. Diego Proaño Falconi & Eduardo Bernabé, 2018. "Determinants of catastrophic healthcare expenditure in Peru," International Journal of Health Economics and Management, Springer, vol. 18(4), pages 425-436, December.
    15. Hilaire Gbodja Houeninvo & Venant Cossi Celestin Quenum & Melain Modeste Senou, 2023. "Out- Of- Pocket health expenditure and household consumption patterns in Benin: Is there a crowding out effect?," Health Economics Review, Springer, vol. 13(1), pages 1-20, December.

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