Abstract
BackgroundMany health systems in Africa are funded primarily through out-of-pocket payments. Out-of-pocket payments prevent people from seeking care, can result to catastrophic health spending and lead to impoverishment. This paper estimates the burden of out-of-pocket payments in Kenya; the incidence and intensity of catastrophic health care expenditure and the effect of health spending on national poverty estimates.MethodsData were drawn from a nationally representative health expenditure and utilization survey (n = 8414) conducted in 2007. The survey provided detailed information on out-of-pocket payments and consumption expenditure. Standard data analytical techniques were applied to estimate the incidence and intensity of catastrophic health expenditure. Various thresholds were applied to demonstrate the sensitivity of catastrophic measures.ResultsEach year, Kenyan households spend over a tenth of their budget on health care payments. The burden of out-of-pocket payments is highest among the poor. The poorest households spent a third of their resources on health care payments each year compared to only 8% spent by the richest households. About 1.48 million Kenyans are pushed below the national poverty line due to health care payments.ConclusionsKenyans are becoming poorer due to health care payments. The need to protect individuals from health care related impoverishment calls for urgent reforms in the Kenyan health system. An important policy question remains what health system reforms are needed in Kenya to ensure that financial risk protection for all is achieved.
Highlights
IntroductionOut-of-pocket payments prevent people from seeking care, can result to catastrophic health spending and lead to impoverishment
Many health systems in Africa are funded primarily through out-of-pocket payments
The World Health Organization (WHO) call for universal health coverage emphasized the need to protect households from catastrophic medical expenses and impoverishment arising from seeking health care [1]
Summary
Out-of-pocket payments prevent people from seeking care, can result to catastrophic health spending and lead to impoverishment. The call urged health systems to ensure that health care costs do not prevent people from receiving needed health services [2]. It estimated that 150 million people suffer financial catastrophe each year due to health care payments and about 100 million are pushed into poverty because of out-of-pocket (OOP) payments [3]. Catastrophic health care payments occur in both rich and poor countries, but over 90% of the people affected reside in low-income countries [4]. All measures suggest that when households spend a large proportion of their budget on health care, they often forego other goods and services, which can have negative implications for living standards [11]
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
