A study on the medicare expenditure burden of households in Korea and eight European countries

Abstract

We compared the levels of healthcare expenses burdened by households in Korea and eight European countries. For Korea, Household Income and Expenditure Survey data was used, and for European countries, the Household Budget Survey data was used. The healthcare expenses of Korean households accounted for 6.8% of total consumption expenditure, the second highest among the countries compared. In terms of single elderly households (14.9%) and households with four members (5.6%), Korea's healthcare expenses as a percentage of consumption expenditures were the highest among the countries compared. The burden of medical expenses as a share of consumption expenditure was relatively higher in Korea for all income quintiles. In particular, the level of healthcare expenditure burden (9.4%) for the lowest income quintile was found to be significantly higher in Korea compared to other countries. Based on this analysis, the following policy recommendations were suggested. First, it is necessary to continuously promote the reimbursement of non-reimbursable items that have increased the patient's out-of-pocket medical expense burden. Second, it is necessary to revise the copayment ceiling scheme to alleviate the burden of low-income households. Third, it is necessary to strengthen the function of primary medical institutions in Korea.