Can Households Cope with Health Shocks in Vietnam?

Analysis of the role of medical insurance in the "Health shocks-consumption upgrading" model: evidence from China

BACKGROUND

The COVID-19 pandemic has brought significant health shocks worldwide, along with a certain burden on healthcare systems. China's healthcare security system has been continuously improved and has essentially achieved universal coverage. Moreover, the health impact of COVID-19 on the Chinese population is diminishing, and the trend of consumption upgrading is becoming more pronounced.

METHODS

Based on the Ramsey-Cass-Koopmans model, this study constructs a theoretical model of "health shocks-consumption upgrading" to deduce the impact of health shocks on consumption upgrading. We examine the results of the theoretical model using provincial panel data from China spanning from 2002 to 2019 and employing the system GMM estimation method. Furthermore, based on a moderation effect model, we explore the mechanism of basic medical insurance systems in this model.

RESULTS

The theoretical model deduces that health shocks lead to a decline in consumption upgrading, which is empirically confirmed. Additionally, the results of moderation effect analysis demonstrate that basic medical insurance systems play a positive moderating role in the "health shocks-consumption upgrading" model. Among the basic medical insurance systems, the New Rural Cooperative Medical Scheme (NRCMS) primarily acts as a positive moderator.

CONCLUSION

Health shocks lead to consumption downgrading, while basic medical insurance systems help to diversify medical risks, alleviate health shocks, reduce precautionary savings, and thereby promote consumption upgrading.

Hunting for fresh food: The impact of online fresh food platforms on health

In response to the growing demand for healthier food, online fresh food platforms have emerged as a convenient solution, aiming to meet this need. This study employs a difference-in-differences design and an imputation method to evaluate the impact of online fresh food platforms on population health. These methodological approaches enable the identification of causal effects, offering insights into how these platforms influence health outcomes across different demographic groups. Our findings reveal that the availability of online fresh food options positively influences health outcomes by increasing physical activity, such as walking time, and reducing BMI, hypertension, and depression rates. Easier access to healthier food fosters healthier lifestyles, contributing to both improved physical and mental health. These findings may offer insights for policymakers, suggesting that the availability of accessible healthy diet options could contribute to improving community health.

Financial struggles and coping with the aftermath of breast cancer care: An ethnographic study in Vietnam

Breast cancer, the most common cancer diagnosed among women, disproportionately affects low- and middle-income countries (LMICs). Based on an ethnographic study conducted in Central Vietnam in 2019, including observation and interviews with 33 women patients, we investigate how women and their families managed the financial burden of breast cancer care. Our findings suggest that in a context where health-related risk protection is poorly organised and out-of-pocket expenses are burdensome, despite the presence of universal health coverage, patients must rely heavily on informal arrangements to finance their treatment. They proactively researched available information and undertook extensive and ramified work to prove their deservingness for some types of assistance, including strategically disclosing their cancer status or using tactics to accelerate the process of applying for state welfare. Affected families must make hard calculations to prioritise the pressing health need of a member diagnosed with cancer and in many circumstances, forfeited the education of their young children. We offer theoretical understanding of 'patient work' beyond the routine management of the biological aspects of an illness. In addition, we demonstrate how engaging in those various coping practices can reinforce one's vulnerability to a vicious cycle of illness and poverty and amplify socio-economic inequalities among the affected community and the larger society. We argue this situation, if not tackled urgently and appropriately, can impede the progress towards achieving Sustainable Development Goal 3 (Good Health and Wellbeing) and Goal 10 (Reduced Inequalities) in LMICs amidst the non-communicable disease epidemic.

It Takes a Village: Health and Old-Age Support in China

How do older individuals cope with health impairments and the potential economic losses that ensue? Exploiting longitudinal data on a nationally representative sample of Chinese seniors, we investigate whether and how familial economic support responds to sudden and sizable changes in health. We find that both financial and instrumental support from children go up following a health shock. Furthermore, financial transfers coming from siblings, other relatives and friends increase by a larger percentage than those from children. We also find evidence that instrumental care received from a spouse responds strongly to health shocks. Finally, we find that although labor supply and earned income drop considerably, there is no significant change in non-health expenditure. Our results suggest that households are able to cope with some of the adverse economic impacts of health shocks by relying on support networks that extend beyond their children and grand-children. This is particularly relevant in the context of shrinking family sizes resulting from stringent family planning policies.

Impact of health shocks on household consumption structure

Introduction

In the aftermath of the pandemic, the impact of health shocks on household expenditure patterns has become a critical area of focus due to the heightened uncertainty surrounding consumers' expectations. Household medical expenditures have emerged as a key factor in the evolving consumption structure.

Method

This research developed a practical framework to assess the influence of health shocks on family spending patterns, focusing on health shortfalls. Health emergencies were measured through randomized medical spending. Data was sourced from the 2010-2018 Wave 5 Statistical Report of the China Family Panel Studies (CFPS), which included a total of 25,809 participants.

Results

The findings revealed that health shocks significantly increased the proportion of household spending on medical expenses. Concurrently, sub-expenditures such as food and education were reduced to varying degrees as households adjusted their consumption patterns to mitigate the impact of health shocks. The effects of these shocks were more pronounced in low-income households and those with health insurance.

Discussions

The government should take steps to promote public health, reduce the burden of medical expenses resulting from health shocks, and unlock the consumption potential. Additionally, efforts should be made to boost economic growth and systematically upgrade household consumption patterns to effectively cushion the impact of health shocks.

Smoothing consumption in times of illness: Household recourse mechanisms

We study the welfare impacts of illness shocks on rural agricultural households in the semi-arid tropical and humid eastern regions of India. These regions are characterized by rainfed agriculture, missing markets for credit and insurance, and limited access to publicly funded healthcare infrastructure. We find that illness shocks increase households' medical expenditures and reduce wage income. However, aggregate non-medical, food, and non-food consumption expenditures are insensitive to illness shocks. Disaggregating illness by the age and the gender of the household members, we observe that illness in male children leads to the largest increase in medical expenditure, and illness in prime-aged adults leads to the largest decline in per-capita wage earnings. We also find illness shocks leading to changes in household dietary diversity, higher travel expenditures, and a compensating reduction in spending on education and entertainment. Analysis of risk-coping strategies reveals that households rely on transfers from kinship networks and loans from informal sources like local moneylenders to smooth consumption. While large landowners rely on gifts from kinship networks, landless and smallholders increase borrowings from informal sources.

Health and health system effects on poverty: A narrative review of global evidence

Ill-health causes poverty. The effect runs through multiple mechanisms that span lifetimes and cross generations. Health systems can reduce poverty by improving health and weakening links from ill-health to poverty. This paper maps routes through which ill-health can cause poverty and identifies those that are potentially amenable to health policy. The review confirms that ill-health is an important contributor to poverty and it finds that the effect through health-related loss of earnings is often larger than that through medical expenses. Both effects are smaller in countries that are closer to universal health coverage and have higher social safety nets. The paper also reviews evidence from low- and middle-income countries (LMICs) and the United States (US) on the poverty-reduction effectiveness of public health insurance (PubHI) for low-income households. This reveals that PubHI does not always deliver financial protection to its targeted population in LMICs. Countries that have succeeded in achieving this goal often combine extension of coverage with supply-side interventions to build capacity and avoid perverse provider incentives in response to insurance. In the US, PubHI is effective in reducing poverty by shielding low-income households with children from healthcare costs and, consequently, generating long-run improvements in health that increase lifetime earnings. Poverty reduction is a potentially important co-benefit of health systems.

Determinants of health poverty vulnerability in rural areas of Western China in the post-poverty relief era: an analysis based on the Anderson behavioral model

BACKGROUND

Although China has eliminated absolute poverty, the effects of sickness still pose a threat to the prospect of returning to poverty in western rural areas. However, poverty governance extends beyond solving absolute poverty, and should enhance the family's ability to resist risks, proactively identify the existence of risks, and facilitate preventive measures to reduce the probability of falling into poverty again. This study aimed to assess the health poverty vulnerability of rural households in western China and decompose its determinants.

METHODS

Based on survey data from 2022, the three-stage feasible generalized least squares method was used to calculate the health poverty vulnerability index. Then, Anderson's health behavior theory model was extended to analyse various influencing factors using binary logistic regression, and the contribution of each influencing factor was decomposed using the Shapley index. Finally, Tobit regression and the censored least absolute deviations estimation (clad) method were used to test the model's robustness.

RESULTS

A total of 5455 families in the rural Ningxia region of western China were included in the study. The health poverty vulnerability index of the sample population in 2022 was 0.3000 ± 0.2223, and families with vulnerability ≥0.5 accounted for 16.9% of the sample population. From the Anderson behavioral model, the three models including propensity, enabling, and demand factors had the best fit, and the AIC and BIC values were the smallest. The Shapley decomposition showed that the dimensions of the propensity factor, number of residents, age and educational level of the household head, and dependency ratio were the most important factors influencing vulnerability to health poverty. Tobit regression and the clad method proved the reliability of the constructed model through a robustness test.

CONCLUSION

Rural areas still face the risk of becoming poor or falling into poverty owing to residents' health problems. Health poverty alleviation should gradually change from a focus on treatment to prevention, and formulate a set of accurate and efficient intervention policies from a forward-looking perspective to consolidate the results of health poverty alleviation and prevent widescale poverty return.

Is household shock a boon or bane to the utilisation of preventive healthcare for children? Evidence from Uganda

This paper investigates how poor households in low-income countries trade off time investment in their children's preventive healthcare vis-à-vis labour force participation during household-level health shocks. By using the reported illness or death of any household member as the indicator for an adverse health shock, I examine its effect on the intake of Vitamin A Supplementation (VAS) by children. Using four waves of the Uganda National Panel Survey, I find that children between 12-24 months are significantly more likely to get VAS when the household is under a health shock. I argue that this effect works through an economies of scale mechanism, by which the household adult(s) utilise the released time from the labour force during the shock to access remedial care from the healthcare facility and simultaneously obtain VAS for their children during the same visit. This arguably results from the high opportunity cost of time-constrained households, which is exacerbated by a mediocre service delivery side. To distinguish the unique mechanism of the health shock in this context, the effect and channels of an income shock are also explored. By proxying a negative income shock with the household-reported incidence of flood or drought, the study cautiously hints that VAS adoption may increase among the relatively wealthy who experience a dominating substitution effect of the income shock.

The Experiences of Strategic Purchasing of Healthcare in Nine Middle-Income Countries: A Systematic Qualitative Review

BACKGROUND

Efforts to move towards universal health coverage (UHC) aim to rebalance health financing in ways that increase efficiency, equity, and quality. Resource constraints require a shift from passive to strategic purchasing (SP). In this paper, we report on the experiences of SP in public sector health insurance schemes in nine middle-income countries to understand what extent SP has been established, the challenges and facilitators, and how it is helping countries achieve their UHC goals.

METHODS

We conducted a systematic search to identify papers on SP. Nine countries were selected for case study analysis. We extracted data from 129 articles. We used a common framework to compare the purchasing arrangements and key features in the different schemes. The evidence was synthesised qualitatively.

RESULTS

Five countries had health technology assessment (HTA) units to research what services to buy. Most schemes had reimbursement mechanisms that enabled some degree of cost control. However, we found evidenced-based changes to the reimbursement mechanisms only in Thailand and China. All countries have some form of mechanism for accreditation of health facilities, although there was considerable variation in what is done. All countries had some strategy for monitoring claims, but they vary in complexity and the extent of implementation; three countries have implemented e-claim processing enabling a greater level of monitoring. Only four countries had independent governance structures to provide oversight. We found delayed reimbursement (six countries), failure to provide services in the benefits package (four countries), and high out-of-pocket (OOP) payments in all countries except Thailand and Indonesia, suggesting the schemes were failing their members.

CONCLUSION

We recommend investment in purchaser and research capacity and a focus on strong governance, including regular engagement between the purchaser, provider and citizens, to build trusting relationships to leverage the potential of SP more fully, and expand financial protection and progress towards UHC.

Hardship financing, productivity loss, and the economic cost of illness and injury in Cambodia

BACKGROUND

Financial risk protection is a core dimension of universal health coverage. Hardship financing, defined as borrowing and selling land or assets to pay for healthcare, is a measure of last recourse. Increasing indebtedness and high interest rates, particularly among unregulated money lenders, can lead to a vicious cycle of poverty and exacerbate inequity.

METHODS

To inform efforts to improve Cambodia's social health protection system we analyze 2019-2020 Cambodia Socio-economic Survey data to assess hardship financing, illness and injury related productivity loss, and estimate related economic impacts. We apply two-stage Instrumental Variable multiple regression to address endogeneity relating to net income. In addition, we calculate a direct economic measure to facilitate the regular monitoring and reporting on the devastating burden of excessive out-of-pocket expenditure for policy makers.

RESULTS

More than 98,500 households or 2.7% of the total population resorted to hardship financing over the past year. Factors significantly increasing risk are higher out-of-pocket healthcare expenditures, illness or injury related productivity loss, and spending of savings. The economic burden from annual lost productivity from illness or injury amounts to US$ 459.9 million or 1.7% of GDP. The estimated household economic cost related to hardship financing is US$ 250.8 million or 0.9% of GDP.

CONCLUSIONS

Such losses can be mitigated with policy measures such as linking a catastrophic health coverage mechanism to the Health Equity Funds, capping interest rates on health-related loans, and using loan guarantees to incentivize microfinance institutions and banks to refinance health-related, high-interest loans from money lenders. These measures could strengthen social health protection by enhancing financial risk protection, mitigating vulnerability to the devastating economic effects of health shocks, and reducing inequities.

Adverse health shocks, social insurance and household consumption: evidence from Indonesia's Askeskin program

This study examines the efficacy of Askeskin, a subsidized social health insurance targeted towards poor households and informal sector workers in Indonesia, in mitigating the impact of adverse health shocks on household consumption. To overcome selection bias from non-experimental nature of Askeskin enrolment, I use a robust estimation strategy, where outcome regressions are run on a propensity score-based matching sample. Using longitudinal data from the Indonesia Family Life Survey, this study finds that uninsured households facing extreme health health shocks experience a 1.3% point loss in growth in food and 2% point loss in non-food consumption growth. Importantly, households having Askeskin insurance, are fully insured in terms of food and medical consumption. But non-food spending, a discretionary component, is not insured fully resulting in a 1.2% point fall in consumption growth rate, despite Askeskin. This result is robust to a battery of sensitivity and robustness checks, including alternate definition of health shocks. Further, I investigate whether the Askeskin program simply displaced informal, community-based mechanisms of risk sharing. No crowd out effect is observed and informal risk-sharing coexists with Askeskin.

Exploring the relationship between air quality and health shocks to the elderly: A retrospective cross-sectional study in China

Methods

We selected 5,172 microdata on individuals from the China Health and Retirement Longitudinal Study (CHARLS) 2018. The binary logit model, the ordered logit model, and the stepwise regression were employed to compare the effects of air pollution on self-rated health (SRH) and activities of daily living (ADL) in an elderly population. The effects on health shocks were explored in different age groups, different gender groups, different regions and different sources of pollutants, respectively.

Results

We found that air pollution significantly increased the risk of health shocks in the elderly population, especially in the 60–69 year age group, and the eastern/central region, where NO2 and O3 were important pollutant sources.

Conclusion

Targeted management of the environment is necessary to improve the health status of China's elderly population. In addition, paying attention to the health status of vulnerable populations is needed to achieve social equity.

The importance of wage loss in the financial burden of illness: Longitudinal evidence from India

BACKGROUND

A key aim of Universal Health Coverage (UHC) is to protect individuals and households against the financial risk of illness, and large-scale health insurance expansions are a central focus of the UHC agenda. Importantly, however, health insurance does not protect against a key dimension of financial risk associated with illness: forgone wage income. In this paper, we quantify the economic burden of illness in India attributable - separately - to wage loss and to medical care spending, as well as differences in them across the socio-economic distribution.

METHODS

We use data from two longitudinal Indian household surveys: (i) the Village Dynamics in South Asia (VDSA) survey (1300 households surveyed every month for 60 months between 2010 and 2015) and (ii) the Indian Human Development Survey (IHDS) (more than 40,000 households surveyed in 2005 and again in 2011). Our regression models include a series of fixed effects that account for time-invariant household- (or individual-) level and time-varying unobservables common across households.

FINDINGS

We find that, in the VDSA sample, wage loss accounts for more than 80% of the total economic burden of illness among the poorest households, but only about 20% of the economic burden of illness among the most affluent. Estimates from the IHDS sample confirm that this socio-economic gradient is present in the Indian population generally.

CONCLUSIONS

Wage loss accounts for a substantial share of the total economic burden of illness in India - and disproportionately so among the poorest households. Our findings imply that if UHC is to achieve its objective of protecting households against the financial risk of illness - particularly poor households, the inclusion of wage loss insurance or another illness-related income replacement benefit is needed.

Short and longer-term impacts of health insurance on catastrophic health expenditures in Kwara State, Nigeria

BACKGROUND

Out- of-pocket health expenditures (OOPs) constitute a significant proportion of total health expenditures in many low- and middle-income countries (LMICs), leading to an increased likelihood of exposure to financial catastrophe in the event of illness. Health insurance has the potential to reduce catastrophic health expenditures (CHE), but rigorous evidence of its sustained impact is limited, especially in LMICs. This study examined the short- and longer-term effects of a health insurance program in Kwara State, Nigeria on CHE.

METHODS

The analysis is based on a panel dataset consisting of 3 waves of household surveys in program and comparison areas. The balanced data consists of 1,039 households and 3,450 individuals. We employed a difference-in-differences (DiD) regression approach to estimate intention-to-treat effects, and then computed average treatment effects on the treated by combining DiD with propensity score weighting and an instrumental variables analysis. CHE was measured as OOPs exceeding 10% of household consumption and 40% of capacity-to-pay (CTP).

RESULTS

Using 10% of consumption as a CHE measure, we found that living in the program area was associated with a 4.3 percentage point (pp) decrease in CHE occurrence (p < 0.05), while the effect on insured households was 5.7 pp (p < 0.05). The longer-term impact four years after program introduction was not significant. Heterogeneity analyses show a reduction in CHE of 7.2 pp (p < 0.01) in the short-term for the poorest tercile. No significant effects were found for the middle and richest terciles, nor in the longer-term. Households with a chronically ill member experienced a reduction in CHE of 9.4 pp (p < 0.01) in the short-term, but not in the longer-term. Most estimates based on the 40% of CTP measure were not statistically significant.

CONCLUSION

These findings highlight the critical role of health insurance in reducing the likelihood of catastrophic health expenditures, especially for vulnerable populations such as the poor and the chronically ill, and by extension in achieving universal health coverage. They also show that the beneficial impacts of health insurance may attenuate over time, as households potentially adjust their health-seeking behavior to the new scheme.

Effect of Health Shocks on Poverty Status in South Korea: Exploring the Mechanism of Medical Impoverishment

BACKGROUND

South Korea has the highest out-of-pocket burden for medical expenses among the Organisation for Economic Co-operation and Development (OECD) member countries and has no formal sickness benefit system, along with United States and Switzerland, greatly increasing the risk of poverty due to a sudden illness.

METHODS

We identify the causal effect of health shocks on poverty status and explore the mechanisms of medical impoverishment by analyzing longitudinal data from 13 670 households that participated in the representative Korean Welfare Panel Study (KOWEPS) from 2007 to 2016. In this study, we define a health shock as a case in which no household members were hospitalized in the previous year, but together they had more than 30 days of hospitalization in this year. The propensity score matching method was combined with a mediation analysis in this work.

RESULTS

The proportion of households in absolute poverty increased by 4.6-8.0 percentage points among households that experienced a health shock compared with matched controls. The selection effects due to health shock were estimated to be 5.6-8.2 percentage points. On average, a sudden hospitalization reduces annual non-medical expenditures and equivalized disposable income by just over 3.2 million KRW (2500 USD) and 1.2 million KRW (1000 USD), respectively. Health shock induces impoverishment after one year through both the medical expense and work capacity pathways, which explain 12.8% and 12.8% of the total effect, respectively. However, when we decompose the mediation effect of a health shock on poverty status after two years, we find that a health shock leads to poverty mainly through labor force nonparticipation (9.9%).

CONCLUSION

Income stabilizing scheme to protect households that experience a health shock should be introduced as a policy alternative to confront the issue of medical impoverishment.

Can Mobile Payment Increase Household Income and Mitigate the Lower Income Condition Caused by Health Risks? Evidence from Rural China

China has moved into a new stage of its fight against poverty, where the further raising of rural household income is of great importance. Health risk is one of the biggest obstacles to the poverty reduction progress. Therefore, how to cope with the negative effects of health risks has attracted the attention of scholars, especially in the background of the global outbreak of COVID-19. In this paper, we try to explore whether mobile payment, a new form of payment, can improve the income of rural households and mitigate the lower income condition caused by health risks in China. Using data from the 2017 China Household Finance Survey, we found: (1) mobile payment can substantially increase rural household income; (2) health risks will lower the income of rural residents, but mobile payment can lessen this negative effect. Mechanism analysis indicates that mobile payment is likely to ease liquidity constraints, increase social interaction, and stimulate entrepreneurship for rural households. We advised the government to promote mobile payment adoption in rural areas and enhance its design. Additionally, better medical resources should also be made available to rural households.

Coping with the consequences of short-term illness shocks: The role of intra-household labor substitution

In developing countries where medical infrastructure, service delivery systems, and the markets for health insurance are underdeveloped, one important mechanism to cope with the consequences of health shocks is the intra-household substitution of labor. This paper studies the impact of short-term illness shocks on labor supply and wage earnings of prime-aged individuals using data from agricultural households in India. It also documents the compensating intra-household labor supply responses of other non-ill members of the household. We find that an illness shock reduces an individual's monthly wage earnings by 7.1% via the decline in the individual's days of employment in the labor market. Further, an illness shock to the household head causes a compensating increase in the wage labor supply of the wife. An illness shock to the wife, however, induces the household head to devote more time to domestic activities. The compensating labor supply responses are only partially able to insure the loss in total wage income of the household. Our results indicate that the gender-based specialization of labor weakens in the event of an illness shock.

Impact of COVID-19 on food insecurity using multiple waves of high frequency household surveys

In response to the rapid spread of COVID-19, governments across the globe have implemented local lockdowns that have led to increased unemployment and have disrupted local and international transport routes and supply chains. Whilst such efforts aim to slow or stop the spread of the SARS-CoV-2 virus, they have also resulted in increased food insecurity, whether due to reduced incomes or increased food prices. This is the first paper to track food insecurity and its determinants during the pandemic using multi-country and multi-wave evidence. Using data from 11 countries and up to 6 waves of High-Frequency Phone Survey data (household-level surveys) on COVID-19 and its impacts, we use a fixed-effects linear probability model to investigate the socioeconomic determinants of food insecurity during the pandemic for each country using household-level data over multiple waves. We control for socioeconomic characteristics including gender and education of the household head; income and poverty status of the households during the pandemic; safety nets in the form of cash and food assistance; coping strategies adopted by households; and price effects of major food items. Our findings suggest that cash safety nets appear to have been more effective than food in terms of reducing food insecurity during the pandemic; and that those particularly hard hit are female headed-households (highest in Malawi: 0.541, 95% CI 0.516, 0.569; lowest in Cambodia: 0.023, 95% CI 0.022, 0.024), the less educated (highest in Djibouti: - 0.232, 95% CI - 0.221, - 0.244; lowest in Nigeria: 0.006, 95% CI - 0.005, - 0.007), and poorer households (highest in Mali: 0.382, 95% CI 0.364, 0.402; lowest in Chad: 0.135, 95% CI 0.129, 0.142). In line with the existing literature, our results show that, even controlling for income loss and poverty status, those households who had to borrow rather than rely on savings had a higher probability of suffering from food insecurity. Distinct differences in the efficacy of safety nets across the 11 countries, and the differential impact of the pandemic on different groups within societies, suggest in-depth country-specific studies are needed to understand why some countries have coped better than others. Our paper highlights the importance of improving household resilience to future systemic crises, and using evidence-based best practice in the design of relevant policy instruments.

The effect of catastrophic health expenditure on exit from poverty among the poor in South Korea

The study aims to examine the effect of catastrophic health expenditure (CHE) on exit from poverty among the poor at the poverty line of less than 40% of median income level (MIL), analysing data from the Korean Welfare Panel Study 2008-2016 through a discrete time event history analysis. Effects of CHE on poverty exit were different between exit to near-poverty and exit to non-poverty. Households facing CHE were less likely to exit from poverty to near-poverty at the CHE thresholds of 20%-30%; however, effects of CHE were not associated with exiting from poverty to non-poverty. Considering the majority of types of exit from poverty were exit to near-poverty (about 70%), this result would raise concerns that occurrences of CHE may pose a big threat to their already limited household budget of the poor. Combined loss of income due to ill health and financial burden due to health care may force the poor to be stuck at poverty. The study was the first exploratory study in South Korea to examine the effect of CHE on exit from poverty. This study is expected to contribute to better understanding of the economic consequences of out-of-pocket payments due to health care among the poor over time. Reduction in the incidence of CHE by expanding the benefits coverage of the national health insurance in Korea can be an important step to reduce poverty.

The long-run effects of noncommunicable disease shocks

The health shocks literature typically does not take into account the temporal patterns of loss since the time of the shock. This limits understanding of the long-run impact of health shocks and the capacity of individuals to cope over time. This study estimates the dynamic effects of a noncommunicable disease shock on the economic well-being of working-age individuals in China up to 6 years after onset. We find that after a period of temporal loss, individuals and their families can insure consumption against the average noncommunicable disease shock over the long-run. We observe significant heterogeneity according to the persistence of the disease, value of household wealth, and health insurance status. Individuals with consistent onset, with below median wealth, and without health insurance are least equipped to smooth consumption over the long-term.

The Impact of Public Health Insurance on Household Credit Availability in Rural China: Evidence from NRCMS

A large body of literature has shown that the burden of healthcare can push individuals and households into the burden of medical care and income loss. This makes it difficult for rural or low-income households to obtain and use safe and affordable formal credit services. In 2003, China's government implemented a new rural public health insurance, which was called the New Rural Cooperative Medical Scheme (NRCMS). This study provides evidence of the impact of NRCMS on household credit availability using the China Family Panel Studies (CFPS) for 2010. The tobit regression approach and mediator model are used. The results show that, as a public health insurance system sustained by the participation of government investment, the NRCMS provides good "collateral" and significantly enhances rural households' formal credit availability level. Furthermore, this positive effect is mainly reflected in the economic effect of NRCMS. Our results are robust to alternative statistical methods. Our findings suggest that expanding access, fulfilling the NRCMS mortgage function, and providing more financial services for rural households would have big benefits with regard to easing credit constraints for rural residents.

Income security during periods of ill health: a scoping review of policies, practice and coverage in low-income and middle-income countries

The COVID-19 pandemic is a reminder that insufficient income security in periods of ill health leads to economic hardship for individuals and hampers disease control efforts as people struggle to stay home when sick or advised to observe quarantine. Evidence on income security during periods of ill health is growing but has not previously been reviewed as a full body of work concerning low-income and middle-income countries (LMICs). We performed a scoping review to map the range, features, coverage, protective effects and equity of policies that aim to provide income security for adults whose ill health prevents them from participating in gainful work. A total of 134 studies were included, providing data from 95% of LMICs. However, data across the majority of these countries were severely limited. Collectively the included studies demonstrate that coverage of contributory income-security schemes is low, especially for informal and low-income workers. Meanwhile, non-contributory schemes targeting low-income groups are often not explicitly designed to provide income support in periods of ill health, they can be difficult to access and rarely provide sufficient income support to cover the needs of eligible recipients. While identifying an urgent need for more research on illness-related income security in LMICs, this review concludes that scaling up and diversifying the range of income security interventions is crucial for improving coverage and equity. To achieve these outcomes, illness-related income protection must receive greater recognition in health policy and health financing circles, expanding our understanding of financial hardship beyond direct medical costs.

Exploring the determinants of distress health financing in Cambodia

Borrowing is a common coping strategy for households to meet healthcare costs in countries where social health protection is limited or non-existent. Borrowing with interest, hereinafter termed distress health financing or distress financing, can push households into heavy indebtedness and exacerbate the financial consequences of healthcare costs. We investigated distress health financing practices and associated factors among Cambodian households, using primary data from a nationally representative household survey of 5000 households. Multivariate logistic regression was used to determine factors associated with distress health financing. Results showed that 28.1% of households consuming healthcare borrowed to pay for that healthcare with 55% of these subjected to distress financing. The median loan was US$125 (US$200 for loans with interest and US$75 for loans without interest). Approximately 50.6% of healthcare-related loans were to pay for the costs of outpatient care in the past month, 45.8% for inpatient care and 3.6% for preventive care in the past 12 months. While the average period to pay off the loan was 8 months, 78% of households were still indebted from loans taken over 12 months before the survey. Distress financing is strongly associated with household poverty-the poorer the household the more likely it is to borrow, fall into debt and unable to pay off the debt-even for members of the health equity funds, a national scheme designed to improve financial access to health services for the poor. Other determinants of distress financing were household size, use of inpatient care and outpatient consultations with private providers or with both private and public providers. In order to ensure effective financial risk protection, Cambodia should establish a more comprehensive and effective social health protection scheme that provides maximum population coverage and prioritizes services for populations at risk of distress financing, especially poorer and larger households.

A new hope: from neglect of the health sector to aspirations for Universal Health Coverage in Myanmar

Myanmar's health sector has received low levels of public spending since 1975. Combined with the country's historic political and economic isolation, poor economic management and multiple internal armed conflicts, these limited resources have translated into low coverage of even the most basic services and into poor health outcomes with wide disparities. They have also resulted in out-of-pocket payments for health as a proportion of total health spending being among the highest in the world. The Government of Myanmar has now affirmed its commitment to moving toward Universal Health Coverage. This commitment is reflected in the National Health Plan 2017-2021. Drawing upon analysis of data from the Myanmar Poverty and Living Conditions Survey 2015 and using the country's revised methodology to estimate poverty, this paper explores some of the consequences of Myanmar's excessive reliance on out-of-pocket funding as the main source of health financing. Around 481 000 households in Myanmar experienced catastrophic health spending in 2015. Of this group, 185 000 households lived below the national poverty line. Households that experienced catastrophic health spending spent, on average, 54.7% of their total capacity to pay on health. Of all Myanmar households that went to a health facility in 2015, ∼28% took loans and ∼13% sold their assets to cover health spending. In that same year, ∼1.7 million people fell below the national poverty line due to health spending. The paper then discusses how ongoing reforms could help alleviate the financial hardship associated with care-seeking. With current political will to reform the health system, a conducive macro-economic environment, and the relatively limited vested interests, Myanmar has a window of opportunity to achieve significant progress towards UHC. Continued high-level political support and strong leadership will be needed to keep reforms on track.

Health Insurance Cards and Health Care Services Utilization: Evidence From Children in Mountainous Regions of Vietnam

Health insurance reform for children younger than 6 years of age was implemented in 2005. The study aimed to describe the health insurance card status, health care services use, and associated factors. The cross-sectional study was conducted with 210 Hmong mothers of children younger than 6 years of age, and of those, 118 mothers having an ill child in the previous 4 weeks were selected in this study. Descriptive statistics and multiple logistic regression were applied to predict the associated factors. In all, 42.9% of children had health insurance cards and 45.8% ill children accessed public health facilities. The factors included children's age, mothers' knowledge of the free health care policy, mothers' knowledge about one sign of lung infection of their children associated with health insurance status, and health care services use. In conclusion, the 2005 reform of child health insurance policy has brought a modest impact on insurance coverage of children younger than 6 years of age and health care services use. Mothers' knowledge of free health care policy should be improved.

Health shocks in sub-Saharan Africa: are the poor and uninsured households more vulnerable?

BACKGROUND

In developing countries, health shock is one of the most common idiosyncratic income shock and the main reason why households fall into poverty. Empirical research has shown that in these countries, households are unable to access formal insurance markets in order to insure their consumption against health shocks. Thus, in this study, are the poor and uninsured households more vulnerable from health shocks? We investigate the factors that lead to welfare loss from health shocks, and how to break the vulnerability from health shocks in three Sub-Saharan Africa (SSA) countries, namely, Burkina Faso, Niger and Togo.

METHODS

This study focusses on 1597 households in Burkina Faso, 1342 households in Niger and 930 households in Togo. A three-step Feasible Generalized Least Squares (FGLS) method was used to estimate vulnerability to poverty and to model the effects of health shocks on vulnerability to poverty.

RESULTS

The estimates of vulnerability show that about 39.04%, 33.69%, and 69.03% of households are vulnerable to poverty, in Burkina Faso, Niger, and Togo respectively. Both interaction variables, 'health shocks and wealth' and 'health shocks and access to health insurance' had a significant negative effect on reducing household's vulnerability to poverty. Poverty is the leading cause of economic loss from health shocks as the poorer cannot afford the purchase of sufficient quantities of quality food, preventive and curative health care, and education. We found that lack of health insurance coverage had a significant effect by increasing the incidence of welfare loss from health shocks. Moreover, household size, type of health care used, gender, education and age of the head of the household as well as the characteristics of housing affect vulnerability to poverty.

CONCLUSION

Our findings suggest that for the poor households, reduction of user fees of health care at the point of service or expansion of health insurance could mitigate vulnerability to poverty. Other challenges-birth control policy, adequate sanitation facilities and a universal basic education program-need to be addressed in order to reduce significantly the effects of health shocks on vulnerability to poverty in SSA.

Dynamics in Health and Employment: Evidence from Indonesia

This paper examines the consequences of disability, identifying for the first time, the separate impacts of onsets and recoveries from disability on both employment status and hours worked using panel data from Indonesia. We find that changes in physical functioning have no affect hours worked among the employed. However, we find that onsets of physical limitations lead to an increase in the probability of leaving employment, while recoveries increase the probability of returning to work. We also find a larger effect among self-employed workers compared to salaried workers. These results overall point towards a need for social protection policies with a focus on health, disability, and employment in Indonesia.

Sociodemographic Factors Influencing Vietnamese Patient Satisfaction with Healthcare Services and Some Meaningful Empirical Thresholds

BACKGROUND

This short communication report some new results obtained from a medical survey among 900 Vietnamese patients in 2015, looking into possibly influential sociodemographic factors as far as patient satisfaction is concerned, to establish empirical relationships between them for policy implications.

METHODS

The study employed the baseline category logit models to establish empirical relationships between predictor variables and responses, which reflect different levels of satisfaction.

RESULTS

Income, medical expenditure, and insurance coverage have the positive influence on improving patient satisfaction. However, insurance reimbursement rate has the negative influence. Patients with residency status are more demanding than those without. The more seriously ill, the less likely a patient finds the health services to be satisfactory. The probability of satisfaction conditional on insurance reimbursement is lower for patients with residency status, and higher for those without.

CONCLUSION

There exist thresholds of income, expenditures, and insurance reimbursement rate, surpassing which probabilistic trends shift. The expenditure threshold for resident patients is almost three times of that for non-residents. An insurance threshold exists only within the group of non-resident patients, ∼65%, suggesting that getting a reimbursement rate higher than this can be very difficult. Therefore, the government's ambitious goal of universal coverage may be both unrealistic and too rigid as patients with different conditions show different perceptions toward healthcare services.

The effect of universal health insurance for children in Vietnam

Our research investigates the effects of the 2005 universal health insurance program for children under age 6 in Vietnam on health care utilization, household out-of-pocket (OOP) spending and self-reported health outcomes using data from the Vietnam Household Living Standard Survey in 2002-2004-2006-2008. We use difference-in-differences to compare children eligible for the program to older children who are ineligible for the program. Results indicate that the program increased insurance coverage by 250% for children age 0-5 relative to the pre-policy period. We found large increases in both outpatient visits and hospital admissions. Health insurance availability also increased outpatient visits at both public and private facilities, suggesting that public and private health care services are complements. Although health insurance was associated with a decrease in inpatient OOP spending for children aged 3-5, it did not reduce outpatient OOP spending for children in general. Health insurance was associated with modest improvements in self-reported health outcomes. Our research suggests that expanded access to insurance among Vietnamese children improved access to care and health outcomes, though it did not necessarily reduce OOP spending.

The Economic Lives of People with Disabilities in Vietnam

Through a series of focus group discussions conducted in northern and central Vietnam, this study gives voice to the lived economic experience of families with disabilities and how they manage the economic challenges associated with disability. The dynamic of low and unstable income combined with on-going health care and other disability-related costs gives rise to a range of coping mechanisms (borrowing, reducing and foregoing expenditures, drawing upon savings and substituting labour) that helps to maintain living standards in the short-run yet threatens the longer-term welfare of both the individual with disability and their household. Current social protection programs were reported as not accessible to all and while addressing some immediate economic costs of disability, do not successfully meet current needs nor accommodate wider barriers to availing benefits.