Determinants of Catastrophic Health Expenditure (CHE): An Indonesian Family Life Survey (IFLS) 2007 & 2014

Afanin Husna; Ni Made Sukartini

doi:10.14414/jebav.v24i1.2644

Authors

Afanin Husna Universitas Airlangga http://orcid.org/0000-0001-9421-7822
Ni Made Sukartini Universitas Airlangga

DOI:

https://doi.org/10.14414/jebav.v24i1.2644

Keywords:

Catastrophic Health Expenditure (CHE), Financial Risk Protection, Indonesian Family Life Survey (IFLS), out-of-pocket expenditure (OOP)

Abstract

This study aims at finding and analyzing the determinants of catastrophic health expenditure (CHE) and its impact on the household economy in Indonesia, usingÂ pooled cross section data from IFLS 2007 and 2014. The study used binary logitÂ regression for analyzing the determinants of CHE and OLS regression to see theÂ impact of CHE on household economy. It was found that the occupational status ofÂ the head of household, size of the household, age, ownership of insurance, visits toÂ health centers, location of residence, and the interaction variable of educatedÂ household heads with chronic disease affect the occurrences of CHE with variousÂ threshold. The OLS regression results found that households who experienced CHE with a threshold of 10% and 40% made a reduction in their basic needs (foodÂ expenditure). It implies that households that experienced CHE also experiencedÂ economic shocks and they are eventually forced to reduce their basic needs (foodÂ expenditure) to meet health needs.

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