London, United Kingdom- July 16, 2025 –
The pursuit of health, a fundamental human right, has become a perilous financial tightrope for millions across the globe. A staggering number of people are pushed to the brink of poverty, or deeper into it, by the exorbitant costs of healthcare. This systemic issue not only exacerbates global poverty but also undermines efforts to achieve universal health coverage and maintain societal well-being.
The Burden of Out-of-Pocket Expenses
The scale of the problem is immense: over 930 million people worldwide are forced to allocate at least a tenth of their household earnings to healthcare expenses. For many, this means making impossible choices between essential medical care and other basic necessities like food, housing, or education. This financial strain is particularly acute in low- and middle-income countries, where public health systems are often underfunded and out-of-pocket payments constitute a significant portion of healthcare financing.
The most dire consequence of this burden is the direct link to impoverishment. Annually, an estimated 100 million individuals are pushed into extreme poverty solely due to healthcare costs. This means they are forced to survive on less than $2.15 per day, demonstrating how a single illness or medical emergency can dismantle years of financial stability and plunge families into destitution. Furthermore, hundreds of millions more are pushed further into poverty, highlighting the precarious economic position of a significant portion of the global population.
The Vicious Cycle: Poverty and Ill Health
This issue forms a devastating vicious cycle: poverty breeds ill health, and ill health, in turn, deepens poverty. People living in poverty are more likely to experience poor health outcomes due to factors such as inadequate nutrition, unsafe living conditions, limited access to clean water and sanitation, and a lack of preventive care. When they do fall ill, the financial barrier to accessing quality treatment can lead to delayed care, worsening conditions, and, ultimately, higher costs or even premature death.
The World Health Organization (WHO) and the World Bank have consistently highlighted that even before the COVID-19 pandemic, more than half a billion people were pushed or pushed further into extreme poverty because they had to pay for health services out of their own pockets. The pandemic only exacerbated this situation, exposing the fragility of health systems and the vulnerability of populations globally.
Key Drivers of Healthcare-Induced Poverty:
Several factors contribute to this alarming trend:
* Lack of Universal Health Coverage (UHC):
In many countries, the absence of comprehensive universal health coverage schemes means that individuals bear a large portion of medical costs directly.
* High Out-of-Pocket Payments (OOPs):
Even where some public services exist, high co-payments, deductibles, and direct payments for medications, diagnostics, and procedures can quickly accumulate and become catastrophic.
* Weak Public Health Systems:
Underfunded public health infrastructure, a shortage of healthcare professionals, and inadequate access to essential medicines force people to seek more expensive private care.
* Limited Financial Protection:
Insufficient social protection mechanisms, such as health insurance or government subsidies for the poor, leave vulnerable populations exposed to financial shocks from illness.
* Rising Medical Costs:
Global medical trends continue to see projected increases in healthcare costs. For 2025, global medical trend rates are expected to remain high at an average of 10.4%, further burdening individuals and health systems. This is driven by factors like advancements in pharmaceuticals, increased utilization of mental health services, and the pressure to develop new medical technologies.
The Imperative for Universal Health Coverage
The evidence is clear: Universal Health Coverage (UHC) is not just a health policy goal but a powerful tool for poverty reduction. UHC aims to ensure that all people have access to the full range of quality health services they need, when and where they need them, without financial hardship.
Research consistently demonstrates that countries that have made strides towards UHC have seen significant reductions in catastrophic health expenditures and a decrease in the number of people pushed into poverty due to medical bills. By eliminating or substantially reducing out-of-pocket payments at the point of care, UHC shields households from devastating financial shocks, allowing them to retain their earnings and invest in other aspects of their lives.
Moving Forward: A Call for Global Action
Addressing the interconnected crises of poverty and healthcare requires concerted global action:
* Prioritizing Universal Health Coverage: Governments must accelerate efforts to implement and strengthen UHC, ensuring equitable access to a comprehensive range of quality health services for all, regardless of their ability to pay. This includes robust public financing and a reduction in reliance on out-of-pocket payments.
* Investing in Primary Healthcare: Strengthening primary healthcare systems – the first point of contact for most people – is crucial for providing accessible, affordable, and comprehensive care, thereby preventing more severe and costly illnesses.
* Financial Protection Mechanisms: Implementing and expanding social protection schemes, health insurance programs, and targeted subsidies for vulnerable populations can shield them from the financial burden of healthcare.
* Addressing Health Inequalities: Policies must actively work to reduce health inequalities, ensuring that marginalized and impoverished communities receive the same quality of care and attention as more affluent groups.
* Sustainable Health Financing: International cooperation and domestic resource mobilization are vital to ensure adequate and sustainable financing for health systems, particularly in low-income countries.
The tragic reality of millions falling into poverty due to healthcare expenses is an indictment of current global priorities. Achieving a world where no one is driven to destitution by the need for medical care is not merely an aspiration; it is an urgent imperative for human dignity, economic stability, and social justice.
