Methods and Methodology: This cross-sectional study was conducted among 100 households with diabetic and hypertensive patients in Chidambaram. Direct costs include cost of consultation, medications, and laboratory investigations. Indirect costs include hospital stay, miscellaneous costs and expenses for meals and travelling, sickness absenteeism by the patient and the family. Results: Each household on an average spent Rs.8295 was spent annually as out of their pocket for direct medical expenditure. The average indirect expenditure incurred was Rs.5534 annually. The mean total medical expenditure incurred was Rs.13830 annually.

Conclusion: This study demonstrates the preference towards government run health care centres has helped the households not to incur catastrophic health expenditure.