Background & objectives: Direct household spending for health care can be estimated as the largest component of household expenditure after food costs. The purpose of this study is Inequality in health expenditure and impoverishment impacts resulting from it in Kerman.

Methods: This is a cross-sectional study. For sampling the Quota sampling method was used. To explore the possibility exposure of households with impoverishment health expenditures and its relationship with  Predisposing variables the Chi-square test and Pearson cross-tabulations were used in Excel and Stata and for determining the concentration index the Gini Coefficient was used.

Results: The study revealed important variables such as Household economic status, head of household sex, head of household education and existence of persons over 65 years had a key role in impoverishment health expenditures. Concentration index in exposure with impoverishment health expenditures was -0.69 and for health expenditures was -0.385.

Conclusion: Inequality in health expenditures depend on some predisposing variable that were shown in this study and with improving socio-economic variable can reduce the inequality in health expenditures and their impoverishment effects.