Will the Economic Recession Inhibit the Out-of-Pocket Payment Willingness for Health Care?

Abstract

We used an individual regression and panel data regression method to analyze the samples of 60 countries from 2000 to 2016 to study the impact of the economic recession on residents’ out-of-pocket payment willingness for health care. Although we found an increase in the willingness during the economic recession in most countries, we couldn’t find significant evidence of a positive relationship between the economic recession and such willingness. We discovered that the relationship differentiates in different countries, which mainly depends on the differences in the medical systems and degree of economic development. By controlling individual differences in countries, we found that the economic recession inhibited the out-of-pocket payment willingness for health care. Especially after the impact of the financial crisis in 2008, the cumulative effect of the economic recession and the aftershock of financial crisis was discovered, which significantly inhibited residents’ willingness. In addition, we verified that the economic recession inhibited the out-of-pocket payment willingness by reducing employee compensation in specific types of countries.

COVID-19 Pandemic

“…Similar to the 2008 economic recession, people worldwide are currently experiencing high unemployment rates, loss of income, and unanticipated access barriers to health care because of the COVID-19 pandemic ( Catton, 2020 ). Healthcare consumers in the United States face paying exorbitant out-of-pocket medical expenses because of rising health insurance copayments, which creates financial distress among suppliers and consumers of health care ( Zheng et al, 2020 ). This economic calamity resulted in lessened employment opportunities for newly licensed RNs because of diminished healthcare revenue.…”

Effect of economic uncertainty on public health expenditure in Economic Community of West African States: Implications for sustainable healthcare financing

“…A study of the impact of economic recession on residents' willingness to make OOP payment for healthcare in 60 countries between 2000 and 2016 finds that economic recession inhibited the willingness to make OOP, even after controlling for country‐specific differences. This happens because uncertainty reduces employee compensation in most countries 12 . A study of the impact of the Greek financial crisis finds that the population level trend in household health spending was reversed after the crisis began.…”

“…This happens because uncertainty reduces employee compensation in most countries. 12 A study of the impact of the Greek financial crisis finds that the population level trend in household health spending was reversed after the crisis began. OOP health spending, and the poorest households received a disproportionately larger impact of the crisis.…”