Financial burden of catastrophic health expenditure on households with chronic diseases: financial ratio analysis

Abstract

Background The financial status of households is vulnerable to chronic diseases which entail high medical expenses and income loss. Financial strain can be assessed by four indicators: a household surplus indicator, the liquid asset/debt ratio, a solvency indicator, and a liquidity indicator. We investigated the association between catastrophic health expenditure (CHE) and financial ratio indicators in households with chronic diseases in South Korea. Methods This study applied thresholds to the financial ratios to determine the financial strain. We conducted multiple logistic regression analyses to determine whether CHE is associated with financial strain. Furthermore, we analyzed the relationship between CHE and basic financial indicators, absolute finance size, using multiple linear regression. Results When CHE occurred, all financial ratio indicators deteriorated. However, this was not due to decreases in the absolute size of wealth and income, but rather the relative balance between finances. In particular, the loss of liquid assets was a major factor in the deterioration. In addition, all types of labor-related income deteriorated; only private transfer income increased. Conclusions This study revealed that CHE in households with chronic diseases negatively impacts household finances. It was found that financial coping strategies are only resource consuming.

Healthcare Challenges due to Global Conflict Escalation Amid the Pandemic, Climate, and Economic Dilemmas

“…Medical care and health spending generally increase faster than general inflation (Goss, 2022). Also, rising inflation is associated with infant mortality rise (Bao et al, 2022); child and maternal health compromise (Cader & Perera, 2011); hospital labor expenses per patient (American Hospital Association, 2022); depression, anxiety, frustration and stress (Guerra et al, 2022); cost burdens of chronic illnesses (Jung et al, 2022); less access to assisted-living and independentliving facilities for the elderly population (Ansberry, 2022); low-income households to compromise food quality (Jimenez Rincon et al, 2022); decline insurance coverage (Chernew & Keenan, 2005); worsening clinical labor shortage, lack of potential educators and high turnover (Fleron et al, 2022); lack of clinically necessary pharmaceuticals and supplies, as well as the accessibility of insecticides necessary to control vector-borne disease (Claborn, 2020), are just a few examples of such problems (Figure 8). 5.…”

Global conflict escalation during the pandemic, climate, and economic dilemmas: Healthcare sustainability challenges in conflict zones and elsewhere

“…Medical care and health spending generally increase faster than general inflation (Goss, 2022). Also, rising inflation is associated with infant mortality rise (Bao et al, 2022); child and maternal health compromise (Cader & Perera, 2011); hospital labor expenses per patient (American Hospital Association, 2022); depression, anxiety, frustration and stress (Guerra et al, 2022); cost burdens of chronic illnesses (Jung et al, 2022); less access to assistedliving and independent-living facilities for the elderly population (Ansberry, 2022); low-income households to compromise food quality (Jimenez Rincon et al, 2022); decline insurance coverage (Chernew et al, 2005); worsening clinical labor shortage, lack of potential educators and high turnover (Fleron et al, 2022); lack of clinically necessary pharmaceuticals and supplies, as well as the accessibility of insecticides necessary to control vector-borne disease (Claborn, 2020), are just a few examples of such problems (Figure 4).…”

Commercial Health Insurance, Catastrophic Medical Expenditures and Resident Income Inequality

“…Basic medical insurance and commercial medical insurance are two parts of the health care system which can complement each other in reimbursement for medical expenses (Jung et al, 2022). According to the synergistic theory proposed by physicist Hermann Harken, subsystems in a system can allow the whole system to develop new structures and functions beyond any single subsystem through cooperation, thus improving the order and overall effect of the system (Haken, 1981).…”

“…Serious illnesses are an important factor that intensi es resident income inequality (Cesare, 2013;Gu et al, 2017;Hoshi-Harada et al, 2022;Jung et al, 2022). To relieve the widening of income inequality caused by serious medical issues, the government of China facilitated development of commercial medical insurance and tried to solve illness-induced poverty by developing a mechanism based on the complementary advantages of the government and market (Wei Yu, 2021).…”