Progressivity and the Re-Ranking Effect of Healthcare Financing in South East Nigeria

Abstract

This study adopts the Lerman and Yitzhaki approach to measure progressivity and re-ranking effects in health care financing in South East Nigeria. Result supports the existence of regressive healthcare payments. Households that spend more to healthcare financing are unable to maintain their original social status due to net income declining below prepayment income. This could certainly be catastrophic as it takes a huge proportion of the household's income, leaving households with insignificant amount on other basic needs. The in the region should develop and implement healthcare policy that can support healthcare spending of the poor households to prevent more people falling deeper into the poverty trap.