Household Health Care Expenditure and Catastrophic Payments: Evidence From The Ghana Living Standards Survey V

Abstract

Out of pocket payments are a significant component of health expenditures in Ghana. Their influence on household welfare therefore merits investigation. This study investigates the determinants of household health expenditures and the incidence of catastrophic health care payments using information from national household living standard measurement surveys. The results show poor households are more likely to spend on health care than wealthy households. Health care expenditures have a low degree of responsiveness to household income and complement food expenditures. The incidence of catastrophic health care payments has improved over time but at the expense of a higher concentration among the poor. The implication is that Ghana National Health Insurance Scheme is an appropriate policy in the right direction and must use effective household means-testing methods to identify and target vulnerable households.