Measuring incidence of catastrophic out-of-pocket health expenditure: with application to India

Rama Pal
International Journal of Health Care Finance and Economics 2012, 12 (1): 63-85
The present paper attempts to provide a new measure of catastrophic out-of-pocket health expenditure based on consumption of necessities. In literature, catastrophic expenditure is measured as out-of-pocket health expenditure that exceeds some fixed proportion of household income or household's capacity to pay. According the new measure proposed in this paper, OOP health expenditure is catastrophic if it reduces the non-health expenditure to a level where household is unable to maintain consumption of necessities. Based on this measure of catastrophic health expenditure, the paper examines determinants of catastrophic out-of-pocket health expenditure in India. The results show that, incidence of catastrophic OOP health expenditure increases with income, when we use the earlier measures. However, results based on the revised measure show that, the incidence of catastrophic payments goes down as income increases. Therefore, the analysis suggests that the findings are sensitive to the method used. The findings from multivariate analysis show economic and social status of Indian households are important determinants of incidence of catastrophic health expenditure. Education reduces the probability of incurring catastrophic health expenditure. Moreover, these findings are sensitive to measure of catastrophic OOP health expenditure and therefore, it is important to consider appropriate measure of catastrophic OOP health expenditure.

Full Text Links

Find Full Text Links for this Article


You are not logged in. Sign Up or Log In to join the discussion.

Related Papers

Remove bar
Read by QxMD icon Read

Save your favorite articles in one place with a free QxMD account.


Search Tips

Use Boolean operators: AND/OR

diabetic AND foot
diabetes OR diabetic

Exclude a word using the 'minus' sign

Virchow -triad

Use Parentheses

water AND (cup OR glass)

Add an asterisk (*) at end of a word to include word stems

Neuro* will search for Neurology, Neuroscientist, Neurological, and so on

Use quotes to search for an exact phrase

"primary prevention of cancer"
(heart or cardiac or cardio*) AND arrest -"American Heart Association"