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Determinants of Out-of-Pocket Expenditures on Medicine in Russia

Student: Berbeneva Aleksandra

Supervisor: Liudmila S. Zasimova

Faculty: Faculty of Economic Sciences

Educational Programme: Applied Economics (Master)

Year of Graduation: 2020

A high level of health is not only a guarantee of an adequate quality of life, but also a primary benefit that all individuals have the right to, regardless of their socio-economic and demographic status. However, to date, even in developed countries, the inequality of citizens in access to medical care and medicines has not been overcome. According to the World Health Organization, approximately 800 million people worldwide spend at least 10% of their income on health care. For 100 million people, the cost of treatment is so high that it can lead to a state of poverty [WHO, 2017]. Out-of-pocket expenditures on medicine tend to account for the largest share of private health care costs, which is particularly worrisome given the fact that a large number of diseases leading to death or disability can be prevented if the necessary medicine therapy is resorted to in time. For Russia, the study of factors that affect the amount of out-of-pocket spending on medicines is particularly relevant, since the drug supply system in Russia applies only to a small part of the population, and citizens bear a significant share of the costs out of their own pocket. The most vulnerable socio-economic groups, such as pensioners, the disabled, and low-income citizens, may have difficulties accessing the medication they need. Thus, the purpose of this study is to assess the factors that determine private spending on medicines in Russia.

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