Catastrophic Health Shocks and Impoverishment in Bangladesh: Insights from HIES 2022

Bangladesh Institute of Development Studies (BIDS) organized a seminar titled “Catastrophic Health Shocks and Impoverishment in Bangladesh: Insights from HIES 2022”. The seminar was held on Monday, 15 July 2024, at BIDS conference room from 2:00 PM to 4:00 PM.

The speaker of the seminar was Dr. Abdur Razzaque Sarker, Research Fellow at BIDS. Dr. Samanta Lal Sen, Honourable Minister, Ministry of Health and Family Welfare, Govt. of the People’s Republic of Bangladesh, graced the event as the chief guest. Dr. Binayak Sen, Director General of BIDS, moderated the event.

In his presentation, Dr. Sarker focused on the incidence of catastrophic healthcare expenditure, the impoverishment effect due to out-of-pocket (OOP) cost, catastrophic health expenditure (CHE) related indicators, and financial distress. The study pointed out medicine expenses were the most significant component of out-of-pocket expenditures.

According to the Household Income and Expenditure Survey (HIES) 2022, Dr. Sarker found that about 3.7 percent of the population had fallen below the poverty line due to out-of-pocket (OOP) expenditure, which consisted of 6.13 million people. 

Dr. Sarker emphasized seeking alternative financing mechanisms to reduce the OOP cost. He pointed out imposing sin tax as an option, noting that tobacco companies affect public health and add extra pressure on the healthcare system as a result. The revenue from the sin tax could be used for the healthcare system. He suggested introducing health insurance to tackle high out-of-pocket expenses, as the effectiveness of social health insurance has been instrumental among different categories of health insurance. Dr. Sarker concluded by estimating that introducing universal health coverage (UHC) in Bangladesh would be achievable on account of the country’s well-structured healthcare system and workforce, therefore, stable and effective policies are required to implement social or national health insurance schemes.

Honourable Health Minister also mentioned that the task of introducing universal health coverage (UHC) is ongoing, though it would need some time. He stated that the budget allocated for the healthcare sector is not very insufficient if it can be used properly. He also expressed his commitment to make healthcare facilities more accessible for rural people and promised to pass the Health Protection Act for the welfare of patients and doctors.

Dr. Binayak Sen proposed setting up community health clinics in urban areas similar to those in rural areas, aiming to form a referral-based healthcare system.

Esteemed guests, including BIDS researchers, healthcare experts, and journalists, participated physically and virtually in the discussion session moderated by Dr. Binayak Sen, Director General of BIDS.