The effects of social health insurance on health and out-of-pocket medical expenses

Abstract

Out-of-pocket Medical expenses (OOPME) constituted 70% of all medical expenses in India in 2012. Such high OOPME, in a country with high poverty, implies lack of access to health care for many. Sherawat and Rao (2012) estimate that such high OOPME raises poverty ratios by 3.5% annually. A number of states in India, including Karnataka, have implemented poverty targeted health insurance programs in an attempt to purchase high quality tertiary care for the poor (La Forgia and Nagpal 2012). The hope is that such schemes may provide a way for below the poverty line (BPL) households to access healthcare at significantly lower costs, particularly when the cost of care is catastrophic.