Catastrophic Health Expenditures and Life Satisfaction: A Case in South Korea

This study examined the prevalence of households in South Korea that had experienced catastrophic health expenditures (CHE) and the impact of such expenditures on life satisfaction. Using data from the 2010 Korean Longitudinal Study of Ageing, this study found that the poverty-national health insurance (NHI) group had the highest likelihood of having CHE but the effect on life satisfaction of having CHE varied among the household groups, mainly in terms of income level and type of medical benefit programs. Households in the poverty-NHI group exhibited much lower satisfaction compared to other groups when they experienced CHE. This study further showed that the harmful effect of facing CHE was confined not only to poor health outcomes or economic hardships but also extended to generally lower life satisfaction in the poverty-NHI group. These findings underscore the importance of providing an adequate financial safety net for the health care of households in the poverty-NHI group.