Economic Implications of Insufficient Health Literacy

Abstract

The main goal of this paper is to elaborate the importance of health literacy in cost-effective utilization of health care services which influence the efficiency of the entire health care sector. In order to complement the theoretical framework of the economic implications and the circular influence of health literacy on the economy, an empirical analysis was carried out using S–TOFHLA. The results suggest that the patients’ personal characteristics and the accessibility to health care services influence the level of health literacy which affects the health care costs.

Key words:

• Health Literacy
• Information Asymmetry
• Public Healthcare Costs
• S-TOFHLA