Inequality and Inequity in Financing Out-of-Pocket Health Expenditures: An Applied Econometric Approach

Abstract

In this study, it is aimed to examine the effect of regulations about unification of health financing system to control out-of-pocket health expenditures, in terms of inequality and inequity of distribution of out-of-pocket health expenditures in Turkey. Data came from Turkish Statistical Institute Household Budget Survey for the years 2003, 2009 and 2015. Index and curve approaches are used together; to determine inequality and inequity and Gini and Concentration indices and departure of Concentration curve from Lorenz curve analysed. Study findings show that, out-ofpocket health expenditures increased from 2003 to 2015, inequality is decreased in terms of the distribution of out-of-pocket health expenditures (Gini index: 2003 [0.75], 2009 [0.71] ve 2015 [0.69]). However, out-of-pocket health expenditures is a kind of a progressive health financing source, considering departure of Concentration curve from Lorenz curve and the level of progressivity is decreasing. Study results shows that, health financing system regulations have contributions, in terms of equal distribution of the financial burden, with an increasing number of people integrated into the health financing system. However, it is remarkable that, there exist a deterioration in progressivity pattern of health financing and there is a heavy burden on poor populations. Thus, it is advisable to increase insurance coverage and determine propoor policies to ensure sustainability of health financing system.