A study released yesterday warns that the elderly are subject to a greater lack of financial security when it comes to this area of expenses.
“Portugal is the third country in the Organisation for Economic Co-operation and Development (OECD) where the weight of direct health expenditure in families’ total expenditure is highest”, says the report on ageing prepared by researchers Pedro Pita Barros and Caroline Santos.
Regardless of the type of healthcare system available in each country, a portion of the payments is directly guaranteed by citizens. That is, it is not covered by the State nor by voluntary or mandatory insurance.
According to this study, conducted as part of the Social Equity Initiative (a collaboration between the La Caixa Foundation, BPI, and Nova SBE) direct health spending in Portugal amounts to 5.2% of total household expenditure. This figure exceeds the average of 3% for all OECD countries and is only surpassed by Switzerland (5.5%) and Korea (6.1%).
“Direct health payments can create a financial obstacle to accessing health products and services, leading to unmet needs and causing financial challenges for individuals who, even with direct payments, struggle to access health services,” the report further warns.
According to the study, direct health expenditure increases significantly from the age range of 45-49. It rises from €329.49 in this age group to €784.04 in the 70-74 age group, marking a 137.95% increase, as emphasised by the researchers.
The situation is particularly challenging for seniors over 70 years old. Direct health expenses exceed 8% of the annual net income per person in the household, increasing to 10.56% for individuals aged 85 years or older. This information is highlighted in the report on ageing to support a clear and well-informed discussion on this topic in Portugal.
Among seniors aged 65 to 69, 65.30% of direct healthcare expenditures were on medications, medical devices, and therapeutic supplies. The second-largest expenditure category is related to medical, paramedical, and other non-hospital healthcare services.
“The analysis presented here reveals that the elderly in Portugal have a great lack of financial protection for health expenses”, warns the report.
Women, elderly individuals living alone, and elderly individuals with lower income and education levels are disproportionately impacted by direct health costs. They allocate a higher percentage of their net income to these expenses.
Researchers Pedro Pita Barros and Carolina Santos also argue that the absence of financial safeguards for the elderly to cover these expenses leads to a deterioration of poverty. This results in both an increase in poverty levels and a higher risk of poverty among the elderly population.
According to the report, signs of inadequate financial coverage for direct healthcare costs only show some of the challenges the population faces in getting healthcare.
The report indicates that just because some households do not report direct health expenses, it does not automatically imply that the State is effectively meeting their needs. Therefore, their direct health expenses may not be zero.
According to the document, these results reveal that if society aims to reduce or correct the current regressivity of direct health expenses, it is necessary to strengthen the financial protection of the elderly for health expenses. For instance, this can be achieved by expanding the existing support for the most disadvantaged socioeconomic groups to access healthcare.
The study also analyses the “loneliness pandemic”, whose impact on health and associated costs “require health systems to prioritise strategies to combat the scourge”.
The report states that a 50-year-old person who often feels lonely is estimated to have a life expectancy of 0.37 years (around four months) less than someone who seldom feels lonely.
For an individual aged 80, experiencing frequent loneliness is estimated to shorten their life by around 0.23 years, which is roughly equivalent to three months. The report further states that the “negative impact of extreme loneliness can be compared to that of a disease such as cancer or chronic obstructive pulmonary disease”.
According to a recent report from the Ricardo Jorge National Health Institute (INSA), most elderly individuals in Portugal do not experience depression. Additionally, the occurrence of mood disorders and anxiety tends to be lower in older age groups.
Yesterday, PORDATA revealed that Portugal and Italy have the highest percentage of elderly population in the European Union (EU), with nearly two elderly individuals for every young person.
