Equity in health care financing: The case of Malaysia
2008

Equity in Health Care Financing in Malaysia

Sample size: 9198 publication 10 minutes Evidence: high

Author Information

Author(s): Yu Chai Ping, Whynes David K, Sach Tracey H

Primary Institution: Health Economics Research Group, Brunel University

Hypothesis

The primary purpose of this paper was to comprehensively assess the equity of health care financing in Malaysia.

Conclusion

Malaysia's two-tier health system has produced a progressive health financing system.

Supporting Evidence

  • Malaysia's health financing system is predominantly tax-financed.
  • Direct taxes were found to be the most progressive source of financing.
  • Out-of-pocket payments were slightly progressive due to selective behavior in health service utilization.
  • Indirect taxes were identified as regressive, disproportionately affecting lower-income households.
  • The study utilized Kakwani's progressivity index to assess equity.

Takeaway

This study looked at how health care is paid for in Malaysia and found that richer people pay more, which is fairer for everyone.

Methodology

Cross-sectional analyses were performed on the Household Expenditure Survey Malaysia 1998/99 using Kakwani's progressivity index.

Potential Biases

Potential biases in self-reported data from the Household Expenditure Survey.

Limitations

The study relies on data from a single year and may not capture changes over time.

Participant Demographics

Households from Malaysia, with a sample size of 9198.

Statistical Information

P-Value

0.3952 for direct taxes, -0.0779 for indirect taxes, 0.0811 for contributions to EPF and SOCSO, 0.2934 for private insurance premiums, 0.1043 for out-of-pocket payments.

Confidence Interval

95% CI for direct taxes: 0.2737–0.5167; indirect taxes: -0.0607 to -0.0951; contributions to EPF and SOCSO: 0.0412–0.1210; private insurance premiums: 0.2917–0.2951; out-of-pocket payments: 0.1018–0.1068.

Statistical Significance

p<0.05

Digital Object Identifier (DOI)

10.1186/1475-9276-7-15

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