CRI

 [ABSTRACT]

  The primary purpose of this study is to identify effective strategies for mitigating the financial burden of medical expenses on households in the Chungbuk region. This study includes a comprehensive analysis of both direct medical costs and direct non-medical costs (caregiver expenses and transportation costs), with a focus on identifying differences by household characteristics. Through a comprehensive exploration of these aspects, this study aims to provide valuable insights for the development of targeted interventions to alleviate the economic impact of healthcare expenditures on households.

  To achieve this purpose, we conduct a review of existing studies on medical expenses and burdens, as well as domestic healthcare support systems. In addition, the 2019 Korean Medical Panel annual data (Ver. 2.0) is used to analyze the medical cost burden of 494 households in Chungbuk.

  Key findings reveal that, firstly, Chungbuk households spent an average of approximately 1.6 million won on direct medical expenses in 2019. In the case of including direct non-medical costs, annual expenditure increased to around 1.96 million won. Secondly, there were statistically significant differences in the level of medical expenses depending on factors such as household's residential area, income level, age or gender of household’s head, and the presence of individuals aged 65 or older, those with disabilities or with chronic illnesses within the household. Thirdly, it was revealed that over one-third of Chungbuk households perceive a financial burden due to medical expenses, with 11.5% considering it a fairly high burden. Furthermore, 5.8% of households in Chungbuk were found to be spending more than 40% of their ability to pay on direct medical costs. When transportation costs and unpaid care costs were added together, 6.4% of Chungbuk households were found to be spending more than 40% of their financial capacity on medical expenses.

  The findings of this study emphasize the need to consider not only direct medical expenses such as hospital fees and medication costs incurred during healthcare utilization but also all associated costs, including caregiver expenses and transportation costs, when assessing the economic burden of medical expenses on households.

  Based on the research findings, several recommendations are proposed for alleviating the medical expense burden on households in Chungbuk. At the central government level, there is a need for improvement in Integrated Nursing and Caregiving services. For instance, there is a need to explore the expansion of public healthcare institutions providing these services and the redesign of their target application into a dual-track system, particularly to support critically ill patients. In Chungbuk, there is a need to explore initiatives for improving the current Post-payment System for Medical Expenses and expanding support programs for caregiver services targeting low-income individuals. Additionally, it is suggested that direct and indirect support programs, such as voucher provision and reimbursement systems, are necessary to alleviate the burden of transportation costs.