Demographic Change, Catastrophic Health Spending and Impoverishment in India

Biplab Dhak, Gujarat Institute of Development Research

This paper focuses on the magnitude and change in out-of-pocket health care spending and its impact on poverty by using two rounds of National Sample Survey data. With very high levels of out-of-pocket (OOP) health care spending, there has been increase with greater magnitude among rural people and those belonging to poorer section of economic strata. The similar picture has also been observed for the impact of OOP spending on poverty; it has increased with greater magnitude in rural area. This paper concludes with substantiating the existent fact that new policies adopted in the health sector reform have significant impact on the increased health care cost and impoverishment. However, demographic transition has had a significant impact; a substantial portion of change in OOP spending and impoverishment is found to be the result of age structure change over the two survey periods.