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Assessing equitable health financing for universal health coverage: a case study of South Africa

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  • John E. Ataguba

Abstract

This article argues that an assessment of progressivity over time can provide an indication of progress towards a ‘more’ progressive or a ‘less’ regressive health financing system and can be useful to policymakers. It introduces a framework to characterize ‘shifts’ in progressivity in health financing between two time periods using the popularly known Kakwani index of progressivity and other associated indices. It also decomposes the ‘shifts’ in progressivity into the relative contributions of the changes in income distribution and the changes in the distribution of health payments. Further, it proposes graphics that statistically analyses how the ‘shifts’ in progressivity vary along the distribution of income. A pro-poor (pro-rich) shift implies that the health financing mechanism is becoming more (less) progressive or less (more) regressive between two time periods. A proportional shift means that progressivity is constant between the two periods. This framework is applied to nationally representative household data from South Africa. It emerged that such characterization is a very useful tool for policy in assessing progress towards equitable health financing.

Suggested Citation

  • John E. Ataguba, 2016. "Assessing equitable health financing for universal health coverage: a case study of South Africa," Applied Economics, Taylor & Francis Journals, vol. 48(35), pages 3293-3306, July.
    • Handle: RePEc:taf:applec:v:48:y:2016:i:35:p:3293-3306
    DOI: 10.1080/00036846.2015.1137549
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    1. Jean-Yves Duclos & Abdelkrim Araar, 2006. "Poverty and Equity," Economic Studies in Inequality, Social Exclusion, and Well-Being, Springer, number 978-0-387-33318-2, July.
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    Cited by:

    1. Steven F. Koch & Naomi Setshegetso, 2021. "Progressivity of out-of-pocket payments and its determinants decomposed over time," Development Southern Africa, Taylor & Francis Journals, vol. 38(5), pages 731-749, September.
    2. Mulenga, Arnold & Ataguba, John Ele-Ojo, 2017. "Assessing income redistributive effect of health financing in Zambia," Social Science & Medicine, Elsevier, vol. 189(C), pages 1-10.
    3. John E. Ataguba & Hyacinth E. Ichoku & Marie‐Gloriose Ingabire & James Akazili, 2024. "Financial protection in health revisited: Is catastrophic health spending underestimated for service‐ or disease‐specific analysis?," Health Economics, John Wiley & Sons, Ltd., vol. 33(6), pages 1229-1240, June.

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