This report, The Role of Healthcare in Reducing Inequalities and Poverty in the EU, published by the European Commission, explores how public healthcare can alleviate social and economic disparities across EU Member States. Chapter 2 examines household-level vulnerabilities, documenting unmet medical and dental needs and the incidence of catastrophic out-of-pocket (OOP) spending, which disproportionately affect low-income and other vulnerable groups. By quantifying these gaps, the report highlights how access to healthcare contributes to reducing poverty and protecting households from financial hardship.
Chapter 3 focuses on the redistributive effects of healthcare financing, comparing traditional wage-based Social Security Contributions (SSC) with more progressive direct taxation. Using EUROMOD simulations, the analysis shows that moving toward direct taxation can reduce inequality, improve financial protection, and strengthen the social value of publicly funded healthcare. Together, these chapters provide a robust evidence base for policymakers to design health financing reforms that enhance affordability, equity, and social inclusion across the EU.
