| Abstract
Background: Socioeconomic indicators are the main factors that affect health outcome. Health price index (HPI) and households
living costs (HLC) are affected by economic reform. This study aimed at examining the effect of subsidy targeting plan (STP) on HPI
and HLC.
Methods: The social accounting matrix was used to study the direct and indirect effects of STP. We chose 11 health related goods
and services including insurance, compulsory social security services, hospital services, medical and dental services, other human
health services, veterinary services, social services, environmental health services, laundry& cleaning and dyeing services, cosmetic
and physical health services, and pharmaceutical products in the social accounting matrix to examine the health price index. Data were
analyzed by the I-O&SAM software.
Results: Due to the subsidy release on energy, water, and bread prices, we found that (i) health related goods and services groups’
price index rose between 33.43% and 77.3%, (ii) the living cost index of urban households increased between 48.75% and 58.21%,
and (iii) the living cost index of rural households grew between 53.51% and 68.23%. The results demonstrated that the elimination of
subsidy would have negative effects on health subdivision and households’ costs such that subsidy elimination increased the health
prices index and the household living costs, especially among low-income families. The STP had considerable effects on health subdivision
price index.
Conclusion: The elimination or reduction of energy carriers and basic commodities subsidies have changed health price and households
living cost index. Therefore, the policymakers should consider controlling the price of health sectors, price fluctuations and
shocks. |