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61 lakh people in Bangladesh plunge into poverty due to healthcare costs

61 lakh people in Bangladesh plunge into poverty due to healthcare costs

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To cover healthcare costs, 26.83% of people take loans, 32.58% break into savings, 18.77% seek help from friends, and 15% sell assets

Mohammad Jahidul Islam

Publisted at 9:28 PM, Mon Jul 15th, 2024

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Approximately 61 lakh people in Bangladesh have fallen below the poverty line due to medical expenses, representing 3.7% of the total poverty, a recent study has revealed. 

The study, titled "Poverty in Bangladesh Due to Catastrophic Health Impacts" was conducted by the Bangladesh Institute of Development Studies (BIDS), 

It was presented today (15 July) by BIDS Research Fellow Dr Abdur Razzaq. 

Based on the Bangladesh Household Income and Expenditure Survey 2022 (HEIS), the research found that 61% of people face financial crises due to hospital admissions, with 27% resorting to loans to cover expenses.

Dr Binayak Sen, Director General of BIDS, chaired the event, with Health and Family Welfare Minister Dr Samanta Lal Sen as the chief guest. 

Dr Razzaq said, “In Bangladesh, 73% of healthcare costs are borne by individuals, second only to Afghanistan at 77%.” 

Other countries' figures include 57% in Pakistan, 51% in Nepal, 49% in India, 18% in Bhutan, and 14% in the Maldives.

Despite high out-of-pocket expenses, Bangladesh allocates only 2.36% of its GDP to the health sector, the lowest among the mentioned countries. 

Dr Razzaq pointed out, “This low allocation forces people to spend more on medical treatments, leading to financial crises.”

Cancer treatment costs range from Tk 6 lakh to 25 lakh, the study revealed. 

On average, a family spends about Tk55,000 when a member is hospitalised, with 25% of this amount spent on medication. 

For non-hospitalised patients, 54% of the expenditure goes towards medication.

To cover healthcare costs, 26.83% of people take loans, 32.58% break into savings, 18.77% seek help from friends, and 15% sell assets. 

The report recommends introducing an insurance system to reduce these costs. 

Dr Binayak Sen stressed the need for health insurance in Bangladesh, suggesting that employers should fund employees' healthcare. 

“Implementing universal healthcare took Germany 127 years. India and China have covered 40% of their populations in 12 years,” he said.

Health Minister Dr Samanta Lal Sen highlighted the importance of improving healthcare services in rural and remote areas, prioritising the treatment of chronic conditions like blood pressure and diabetes to reduce the need for large specialised hospitals in Dhaka.

Addressing the misuse of antibiotics, Dr Samanta called for stricter monitoring and the implementation of a digital prescription system. 

“Antimicrobial resistance is a severe issue due to the indiscriminate use of antibiotics,” he warned.

Regarding the Health Protection Act, the health minister stated, “In my six-month tenure, I have held at least seven meetings on the act. I am committed to taking it to the National Assembly to ensure the protection of both patients and doctors.”

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