Is Financial Literacy a Determinant of Health?

Abstract

Changes in economic conditions and healthcare delivery models have shifted more healthcare costs to patients, resulting in greater patient financial responsibilities. As a result, it is important to understand the potential impact of financial literacy on patients' healthcare behavior. With the focus on delivering better health outcomes at lower costs, factors that influence patient behavior are important considerations for healthcare providers. Although researchers have proposed a variety of conceptual models that identify influential factors, those models do not fully address financial literacy and its potential impact patients' healthcare decisions. This article examines existing models of patient healthcare decision-making and current research on factors affecting patient decision-making and behavior and then presents recommendations for closing the identified gap in our current knowledge.

Financial literacy and quality of life of consumers faced with cancer: a moderated mediation approach

“…Empirical evidence indicates that 70% of consumers diagnosed with cancer reduce leisure activities, 48% withdraw savings and 18% sell their possessions (De Souza et al, 2014). Moreover, out-of-pocket cost of treatment often forces consumers with chronic disease and low income to reduce expenditure on food and even medication, which exacerbates their health problems (Galbraith et al, 2011;Ubel et al, 2013;Kullgren and Mclaughlin, 2010;Meyer, 2017). Another consequence of high financial distress might be foregoing the medical care completely or switching from a more effective to a less effective therapy.…”

A qualitative investigation of the health economic impacts of bariatric surgery for obesity and implications for improved practice in health economics

“…The consequences of financial burden due to out‐of‐pocket expenditures for people who undergo bariatric surgery (and indeed other disease categories across different health care systems) are poorly understood (Aji, Yamamoto, & Sauerborn, ; Campbell, Venn, et al, ; Gott, Allen, Moeke‐Maxwell, Gardiner, & Robinson, ; Timmons, Gooberman‐Hill, & Sharp, ; Ubel, Abernethy, & Zafar, ; Wu, Odisho, Washington, Katz, & Smith, ). A recent study has found that financial distress is a key determinant of health (Meyer, ).…”

Experiencing Financial Hardship Associated With Medical Bills and Its Effects on Health Care Behavior: A 2-Year Panel Study

“…This may be related to the fact that younger adults and females have lower levels of knowledge about financial literacy and how to finance their medical care (Fonseca, Mullen, Zamarro, & Zissimopoulos, 2012; Karpman & Caswell, 2017). Financial education programs to increase individuals’ financial literacy in the context of health care would promote better financial behaviors in relation to health service utilization (Meyer, 2017).…”