Determinants of the Per capita Out-of Pocket Health Expenditure of the 4Ps Families in the Philippines

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1 Determinants of the Per capita Out-of Pocket Health Expenditure of the 4Ps Families in the Philippines Martha Joy J. Abing Mindanao State University-Iligan Institute of Technology November 8,2017

2 Rationale The Pantawid Pamilyang Pilipino Program (4Ps) is a CCT program of the DSWD that provides cash grants to poorest of the poor beneficiary households conditional on compliance to specified investments on human capital, mainly sending children to school and availing of preventive health care services. (Official Gazette, 2014)

3 Beneficiaries of PHIC has increased With the implementation of the Republic Act No as amended by Republic Act No. 9241, RA 10606, 91% of the Filipinos are now covered by the Philhealth Insurance ( Philhealth Stat, 2016) Government health expenditure shifts to public health care In 2014, Philippine government spent for public health (in billion pesos) at 21.6 %, which is more than twice the 10.0 percent target. (PSA, 2014) Health spending from all funding sources increases, but OOP health spending continues to account for slightly more than half of the total health expenditure (PSA,2013)

4 Table 1: Distribution of Health Expenditure by Source of Funds, Percent Share Sources of Funds Government Nat'l. Govt Local Govt Social Insurance NHIP Employees Compensation Private Sources OOP Private insurance Health Maintenance Org Private Establishments Private Schools Rest of the World (Grant) All sources Source: Philippine Statistical Authority, 2013

5 Out of pocket expenditure comprises more than half of the total health care expenditure Year (Source: PSA, 2014) OOP Health spending as percentage of total health expenditure 56.3% 55.8%

6 Despite social safety nets are in place to facilitate access, out-ofpocket (OOP) expenditures remain to be Filipinos major source of financing when health care is most needed. (NSCB-NHA n.d)

7 Medicines or drugs continue to account for a major slice of OOP expenses among the poor, which suggests that poor households heavily rely on medicines in lieu of actual health facility visits ( ULep and Dela Cruz, 2013) Table 2. Distribution of OOP expenditure by components (in percent) Components Poorest Richest Medicines Hospital Charges Medical and Dental Other medical goods Other medical services Contraceptives Food supplement Source: Lavado and Ulep (2011)

8 Research Question Do 4Ps families spend more on health particularly on medical products, therapeutic gadgets and equipment?

9 Significance of the Study contributes to the existing literature on out-of pocket health expenditure through the analysis of health care benefits and services provided to the 4Ps families. Basis for policy making for government agencies such as the Department of Social Welfare and Development (DSWD)and the Philippine Health Insurance Corporation (PHIC) and the nongovernment organizations that are concerned with health care services for those who are below the poverty line.

10 Related Literature The level of per capita medical expense was significantly associated with household size, presence of members younger than 18, older than 65, illness condtions, basic health insurance coverage, per capita income, and household head occupation (Fang, et al. 2012). Households with members 5 years old or younger and/or members 65 years old or older have higher probability of incurring in catastrophic healthcare spending than households that have no members in those two age groups. (Amaya- Lara, 2016) People who reside in remote and rural areas generally live further from health facilities incur higher OOP payments than those living in urban areas due to travel cost (Masiye and Kaonga,2016).

11 Annual health checkups may contribute to reduction of medical expenditures. (Suka, 2009) Employment and education status of an individual or household tends to affect their OOP medical expenditures. (Okello and Njeru, 2015) Household features like literate head and spouse, unsafe water and unhygienic toilet were significant positive predictors of OOP payments while households with male head, household with at least one child and no elderly, and head of household in a white collar profession were negative predictors of OOP payments.(malik and Syed,2012)

12 Conceptual Framework Independent Variables Per capita family income (decile 1-3) Family size Education Level of the family head educ head_hs educ head_ College Gender of the family head Proportion of ill members in the family Availing of medical check up Age group Proportion of 5 yrs old and below in the family proportion of 60 yrs old and above in the family Location Availing of Supplementary feeding program Dependent Variable Per capita OOP Health Expenditure of the 4Ps Families particulary on medical products, therapuetic gadgets and equipment

13 Methodology Cross sectional secondary data obtained from the 2013 Annual Poverty Indicators Survey (APIS) in the Philippines using an ordinary least square multiple linear regression model To test the hypothesis at 5% level of significance, the mathematical model used is shown below: OOPHE i = β 0 - β 1 FI + β 2 FZ - β 3 HSe - β 4 Ce - β 5 MH + β 6 PIM - β 7 AMC +β 8 PU5 + β 9 PA60 +β 10 L - β 11 ASF + e i

14 Regression Result Pc_OOP health exp. Coef. Std. Err. t P>t pc_ income_ decile pc_income_ decile pc_income_decile family size family head=male prop_ 5or below of age prop_60and above of age educ_head_hs educ_head_college prop _ill members Supp. Feeding program Avail. med check up urban= _cons

15 Summary of Findings The study reveals that per capita OOP health expenditure on medical products, therapeutic gadgets and equipment of the 4Ps families is no more likely to increase, if their: 1. family income is high since having higher income means better living conditions,better health, better economic resources and awareness toward the need for health care ( Brinda et al. 2012); 2. family size is large since family size is a proxy of family support and family care-giving,which substitutes for medical care expenses ( Halliday and Park,2009);

16 3. family head is male since male is less concerned on the health condition of the family than females (Bin Chu, et al., 2005); 4. family head is less educated since probably they are earning lower income and more likely to be unemployed. Hence, they may not use effective modern medicine ( Okello and Njeru, 2015); 5. proportion of 60 yrs old and above in the family is less since lesser possibility of ocurring illness or multiple chronic conditions, which requires to spend for medical care ( Gupta, 2017); and 6. proportion of ill members in the family is less since lesser amount needed for medical care if public facilities run out of drugs ( Masiye and Kaonga, 2016).

17 Conclusion and Recommendation This study result shows that 4PS families per capita outof-pocket health expenditure on medical products therapeutic gadgets and equipment is affected by their family income, family size, gender of the family head, proportion of 60 years old and above in the family, education level of the family head and the proportion of ill members in the family. Hence, policy makers may find a way to improve and implement a better public health services so that 4Ps families can get any health services they need without imposing additional financial burden on their families.

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