The extent of progressivity inherent in a country?s health care financing system has great potentials for redistribution of resources. A regressive health care financing system would imply that the poor are paying proportionately more than the rich to sustain the health care system in the country. This has the potentials to escalate the resource gap between the poor and the rich particularly if the poor are also more needy of health care services .In many developing countries there are widening inequalities between the subsistent poor and the affluent rich. In the past one and half decades, rising inequality between the rich and the poor in Nigeria has become a major source of national and international concern. This study examines whether or not the prevailing health care financing arrangement, namely direct healthcare financing, and the structure of the health care market in the country contribute to income inequalities between the rich and the poor and the poverty level in Nigeria. For this purpose, the Aronson-Johnson-Lambert (AJL) method of decomposition was used. The data set was generated from a recent survey carried out in Enugu State, Nigeria. The preliminary findings show that the health financing arrangement has pro-rich redistributive effects. It also shows that much of the inequity in the existing healthcare financing model arises from horizontal inequity and re-ranking. The private healthcare market generates substantially more inequities than the public healthcare market. But the results also indicate that the extent of redistributive effect depends on the definition of ?income-equals? used in the estimation.
Project leader: Hyacinth Ichoku Ementa
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|The Redistributive Effects of Healthcare Financing in Nigeria||2006-10-08||563.85KB||0||0|
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