Association Between Health Literacy and Outpatient Expenditure in Korea

Area of Science:

• Health Economics
• Public Health
• Health Services Research

Background:

• Health literacy (HL) significantly impacts healthcare utilization and costs globally.
• Limited empirical data exists on the HL-healthcare expenditure relationship in South Korea, despite rising outpatient costs.
• Understanding this relationship is crucial for healthcare policy and resource allocation.

Purpose of the Study:

• To investigate the association between health literacy and outpatient healthcare expenditures in South Korea.
• To identify specific demographic groups where this association is most pronounced.

Main Methods:

• Analysis of the 2021 Korea Health Panel Survey data (n=8,630).
• Health literacy measured using the Korean version of the Health Literacy Survey European Questionnaire 16 (HLSE-16), categorized as high (≥13) or low (≤12).
• Outpatient expenditure (excluding pharmaceuticals) analyzed using log-transformed data and multivariable linear regression, with subgroup analyses by age.

Main Results:

• Individuals with high health literacy reported 8.6% lower outpatient healthcare costs compared to those with low health literacy.
• The association between higher health literacy and reduced outpatient costs was statistically significant only in adults aged 65 years and older.
• No significant association was found in younger age groups.

Conclusions:

• Higher health literacy is associated with decreased outpatient healthcare expenditures in South Korea.
• Targeting health literacy promotion initiatives towards older adults may be an effective strategy to reduce healthcare costs.
• Improving health literacy can contribute to greater healthcare system efficiency and manage rising outpatient spending.