The Financial Burden of Out of Pocket Payment for Medicines among Households in Ethiopia

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Date

2021-09

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Publisher

Addis Abeba University

Abstract

Background: In Ethiopia, more than half of all out-of-pocket (OOP) health expenses are for medicine. However, there is a scarcity of information on the cost impact of medicine on households. Objective: This study aims to investigate the financial implications of OOP payment for medicines for Ethiopian households. Methods: A sequential mixed methods explanatory design was employed in this study. The quantitative part involved a secondary analysis of the national household consumption and expenditure surveys of 2010/11 and 2015/16. Catastrophic OOP expenditures for medicines were measured using the “capacity to pay” method. Logistic regression models were used to determine the factors of catastrophic medicine payment. In-depth interviews were used to collect qualitative data from key informants working in relevant government agencies. The framework analysis approach was used also to analyze qualitative data. Results: From 2010 to 2016 the total percentage of households facing catastrophic medicine payments decreased from 1% to 0.73%. This means payment for medicines pushed 11,132 households into poverty in 2015/16. The majority of disparities were explained by economic status, place of residence, and type of health services. The qualitative analysis identified four major themes in the areas of the current context of medicine OOP payment, aggravating factors for medicine OOP, failures to implement planned interventions, and plans. Conclusion: The findings show that, despite improvements over the years, OOP payment for medicines pushed thousands of Ethiopian households to poverty. Hence, introducing and strengthening the implementation of pro-poor policies are recommended.

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Keywords

Catastrophic medicine expenditure, Ethiopia, financial risk protection, out- of-pocket payments, poverty, universal health coverage.

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