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DOI: https://doi.org/10.63345/ijrhs.net.v14.i8.3
Jyoti Chauhan
Research Scholar
Shambhu Dayal (PG) College
G.T. Road, Ghaziabad, Uttar Pradesh
ORCID id- https://orcid.org/0009-0008-5401-6397
Abstract— Out-of-pocket (OOP) healthcare expenditures represent a significant financial burden for Indian households, threatening economic stability and exacerbating poverty. This study examines the relationship between medical spending and household consumption vulnerability across rural and urban India. Using cross-sectional data from 2,847 households across 12 states, we assess how healthcare costs impact consumption patterns, savings capacity, and financial stability. Results indicate that 34.2% of sampled households faced catastrophic health expenditures, with 18.7% resorting to distress financing. Rural households spent 14.3% of monthly income on healthcare compared to 8.9% in urban areas. Multivariate logistic regression reveals that household income, disease prevalence, and employment status significantly predict vulnerability to consumption shocks. We estimate that approximately 63 million individuals fall into poverty annually due to health expenses. This research demonstrates that without targeted healthcare financing reforms, vulnerable populations will continue experiencing severe consumption disruptions. Policy interventions should prioritize universal health coverage expansion and pharmaceutical cost regulation to mitigate household financial vulnerability.
Keywords— out-of-pocket health expenditure, catastrophic health spending, household consumption, poverty, financial vulnerability, India
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