Objectives: Different levels and trends of healthcare expenditure observed in different regions of the world caused emerging of various studies towards explanation of this phenomenon, much of them in developed countries. The aim of this study is exploring some of the major theoretical determinants of healthcare expenditure and their effects in Asian countries.

Method: for this purpose, panel data regression technique for 43 Asian countries through 1995-2010, controlling for fixed effects has been used.

Findings: Controlling for fixed effects and through income classification, empirical results show that, per capita income could explain a large portion of healthcare expenditure variation between surveyed countries, also there is significant difference in determinants effects in classified country income groups.

Results: income elasticity of private healthcare expenditure varies through classified income-related country groups but however this expenditure is necessity or “need” rather than luxury in the most countries of this region.