Health Expenditure in Covid-19 Times and the Need for Affordable Houses that Nurture Healthy Citizens: A Roadmap for Digital Economy of Kerala

Abstract

Introduction: The huge and unaffordable expenditure on health for hospitalization, medicine etc. due to Covid-19 disrupted the financial stability of many households, mostly those in the lower income strata with severe infection. This study explores the Out of Pocket (OOP) expenditure and allied financial concerns of households, some of them having incurred ‘Catastrophic’ levels of health expenditure in Covid-19 times. So, this study seeks to reduce such expenditure and to ensure healthy and affordable living.   

Methodology: Besides authentic secondary data, the study used primary data gathered from a 120-number sample (residents of Ernakulam district, Kerala) hospitalised because of Covid-19. Using a pretested interview schedule data were collected over four months’ period of Covid-19. Direct hospitalization costs (medical & non-medical), and the total (monthly) costs incurred by the respective households were collected. Households which incurred direct medical expenditure in excess of 40 percent of their effective monthly income were considered as ‘Catastrophic’ type health expenditure.

Results: It was found that 50.83 percent of the households incurred health expenditure of ‘Catastrophic’ type and the rest had ‘Non-Catastrophic’ expenditure. In fact, 31.67 percent faced the ‘Distress Financing’ problem. The challenges of the households were insufficient savings, poor co-operation from the heads, poor health consciousness etc. Remedial measures, including ICT adoption in the healthcare sector, were suggested. 

Conclusion: Incidence of high catastrophic health expenditure and distress financing, as disclosed from this study, shows the need to address the issues like high OOP expenses. So also, affordable houses with features that ensures good health needs to be promoted.