Measuring Socioeconomic Disparities in Out-of-Pocket Healthcare Expenditure: Evidence from Saudi Arabia
This study aims to identify the determinants of healthcare expenditures and their impacts on the livelihoods of urban populations in Riyadh in Saudi Arabia. Employing quantitative econometric methods, specifically ordinary least squares (OLS) regression on data from the 2018 Saudi Arabia Household...
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Qubahan
2025-08-01
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| Series: | Qubahan Academic Journal |
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| Online Access: | https://journal.qubahan.com/index.php/qaj/article/view/1942 |
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| author | Mohamed Ali Ali |
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This study aims to identify the determinants of healthcare expenditures and their impacts on the livelihoods of urban populations in Riyadh in Saudi Arabia. Employing quantitative econometric methods, specifically ordinary least squares (OLS) regression on data from the 2018 Saudi Arabia Household Income and Expenditure Survey (HIES) and is further supported by the WHO-based Global Health Reviews Living Standard Measurement Survey (LSMS) the findings reveal that insurance membership does not significantly lower out-of-pocket healthcare expenditure (OOPHE), which reflects limitations in existing programs such as high deductibles, cost-sharing requirements, and restricted coverage that leave households exposed to substantial healthcare costs. In addition, the study finds that higher average monthly income is associated with increased OOPHE, indicating that wealthier households tend to utilize a broader range of both essential and elective healthcare services, leading to higher expenditures despite their greater financial capacity. Healthcare spending variation is also driven by demographic factors. Further, male-headed households do not show a statistically significant effect but female-headed, households with young children, and larger households incur more OOPHE. Indeed, it indicates that other factors such as socioeconomic and familial dynamics are instrumental in shaping the healthcare costs. These findings thus emphasize the imperative for policymakers not only to increase insurance coverage but also to reframe insurance designs to be more protective and financially comprehensive. Possibilities include the reduction of cost-sharing requirements, lowering deductibles, and expanding the range of services covered to better protect vulnerable populations. Research using longitudinal data should examine whether improvements in insurance design contribute to reductions in OOPHE over time.
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| format | Article |
| id | doaj-art-11e9b5c729a1447fb7c787014c9f2e2f |
| institution | Kabale University |
| issn | 2709-8206 |
| language | English |
| publishDate | 2025-08-01 |
| publisher | Qubahan |
| record_format | Article |
| series | Qubahan Academic Journal |
| spelling | doaj-art-11e9b5c729a1447fb7c787014c9f2e2f2025-08-21T14:52:37ZengQubahanQubahan Academic Journal2709-82062025-08-015310.48161/qaj.v5n3a1942Measuring Socioeconomic Disparities in Out-of-Pocket Healthcare Expenditure: Evidence from Saudi ArabiaMohamed Ali Ali 0Department of Finance, College of Business Administration, Hawtat Bani Tamim, Prince Sattam Bin Abdulaziz University, Al-Kharj 11586, Saudi Arabia. This study aims to identify the determinants of healthcare expenditures and their impacts on the livelihoods of urban populations in Riyadh in Saudi Arabia. Employing quantitative econometric methods, specifically ordinary least squares (OLS) regression on data from the 2018 Saudi Arabia Household Income and Expenditure Survey (HIES) and is further supported by the WHO-based Global Health Reviews Living Standard Measurement Survey (LSMS) the findings reveal that insurance membership does not significantly lower out-of-pocket healthcare expenditure (OOPHE), which reflects limitations in existing programs such as high deductibles, cost-sharing requirements, and restricted coverage that leave households exposed to substantial healthcare costs. In addition, the study finds that higher average monthly income is associated with increased OOPHE, indicating that wealthier households tend to utilize a broader range of both essential and elective healthcare services, leading to higher expenditures despite their greater financial capacity. Healthcare spending variation is also driven by demographic factors. Further, male-headed households do not show a statistically significant effect but female-headed, households with young children, and larger households incur more OOPHE. Indeed, it indicates that other factors such as socioeconomic and familial dynamics are instrumental in shaping the healthcare costs. These findings thus emphasize the imperative for policymakers not only to increase insurance coverage but also to reframe insurance designs to be more protective and financially comprehensive. Possibilities include the reduction of cost-sharing requirements, lowering deductibles, and expanding the range of services covered to better protect vulnerable populations. Research using longitudinal data should examine whether improvements in insurance design contribute to reductions in OOPHE over time. https://journal.qubahan.com/index.php/qaj/article/view/1942healthcare expenditures, OOPHE, insurance membership, average monthly income, demographic factors. JEL: I13, I18, D12. |
| spellingShingle | Mohamed Ali Ali Measuring Socioeconomic Disparities in Out-of-Pocket Healthcare Expenditure: Evidence from Saudi Arabia Qubahan Academic Journal healthcare expenditures, OOPHE, insurance membership, average monthly income, demographic factors. JEL: I13, I18, D12. |
| title | Measuring Socioeconomic Disparities in Out-of-Pocket Healthcare Expenditure: Evidence from Saudi Arabia |
| title_full | Measuring Socioeconomic Disparities in Out-of-Pocket Healthcare Expenditure: Evidence from Saudi Arabia |
| title_fullStr | Measuring Socioeconomic Disparities in Out-of-Pocket Healthcare Expenditure: Evidence from Saudi Arabia |
| title_full_unstemmed | Measuring Socioeconomic Disparities in Out-of-Pocket Healthcare Expenditure: Evidence from Saudi Arabia |
| title_short | Measuring Socioeconomic Disparities in Out-of-Pocket Healthcare Expenditure: Evidence from Saudi Arabia |
| title_sort | measuring socioeconomic disparities in out of pocket healthcare expenditure evidence from saudi arabia |
| topic | healthcare expenditures, OOPHE, insurance membership, average monthly income, demographic factors. JEL: I13, I18, D12. |
| url | https://journal.qubahan.com/index.php/qaj/article/view/1942 |
| work_keys_str_mv | AT mohamedaliali measuringsocioeconomicdisparitiesinoutofpockethealthcareexpenditureevidencefromsaudiarabia |