Out of pocket expenditure on tuberculosis in India: Do households face hardship financing?

Background: In 2017, India accounted for 27 percent of the global burden on tuberculosis, and the highest among the top 30 countries with high TB burden. Despite the expansion of DOTS programme many households in India incur high expenditure towards TB treatment. Most of the studies in India have focused on measuring catastrophic health expenditure on TB. Catastrophic health expenditure and its impoverishment effects are difficult to calculate and may misrepresent economic hardship.

Methods: This paper uses hardship financing, i.e. when a household sells assets or borrows money on interest to pay for healthcare expenditure, as an indicator of the hardship of the family when it spends on TB treatment using NSSO 71st Round 2014 data.

Results: Using the NSSO national representative sample, the paper estimated that 26.7% of hospitalized cases and 3.5% percent of patients utilising outpatient care experience hardship financing due to TB in the country. 25.9% of the general population had to sell assets or used borrowings for financing TB hospitalization expenses. Education of head of household, income, type of health facility used, and number of hospitalized days were found to be significant factors influencing hardship financing.

Conclusion: Our study highlights that even with free care for tuberculosis, 21.3% were exposed to hardship financing, suggesting the need to re-look at the subsidy coverage of tuberculosis treatment in the country. The study also suggests the use of hardship financing as an alternative to catastrophic spending method as a index of effectiveness of tuberculosis control programme in the country.