Aging & Society: Eighth Interdisciplinary Conference

Abstract

Indirect costs can constitute a substantial part of total patient care, especially for older people. Costs associated with carers, travel, food and accommodation for family members accompanying and caring for older people during their medical visits can be hefty. Older people from low socioeconomic groups often find it difficult to meet these costs. This paper examines the effects of indirect costs on inpatient care and how these costs affect catastrophic health payments and health payment-induced poverty among older people in rural China. Data were drawn from the China Health and Retirement Longitudinal Survey (CHARLS) 2015. The findings suggest that indirect costs can account for more than 15% of the overall inpatient costs. These costs increased the chances of rural older people incurring catastrophic health payments and suffering from health payment-induced poverty. Such effects are more concentrated among the poor than the rich. This paper urges policy makers to consider reimbursing the indirect costs of patient care, improving the benefit packages of social health insurance for older people living in rural China as well as strengthening rural health and long-term care systems.