Catastrophic Medical Expenditures : Reflections on Three Issues
The ‘basic’ approach to 'catastrophic' medical expenses (where expenses are related to consumption or income) indicates whether expenses cause a large percentage reduction in living standards. By contrast, the 'ability-to...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/102911543240444440/Catastrophic-Medical-Expenditures-Reflections-on-Three-Issues http://hdl.handle.net/10986/30878 |
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okr-10986-308782021-09-16T21:52:51Z Catastrophic Medical Expenditures : Reflections on Three Issues Wagstaff, Adam MEDICAL EXPENSES IMPOVERISHMENT FINANCIAL HARDSHIP FINANCIAL PROTECTION MEDICAL CARE COST HEALTH FINANCE The ‘basic’ approach to 'catastrophic' medical expenses (where expenses are related to consumption or income) indicates whether expenses cause a large percentage reduction in living standards. By contrast, the 'ability-to-pay approach' (where expenses are related to consumption or income less actual expenses on nonmedical necessities or an allowance for them) does not indicate whether expenses are large enough to undermine a household’s ability to purchase nonmedical necessities. If the individual is a borrower after a health shock, the income-based ratio will exceed the consumption-based ratio, while the opposite is true when the individual continues to be a saver after a health shock. In the first case, both ratios will exceed Flores et al.'s more theoretically correct ratio, with the income-based ratio overestimating it by more. But if the individual is still a saver even after a health shock, the income-based ratio will overestimate Flores et al.'s ratio by less and may not overestimate it at all. A lifetime money metric utility approach can capture the lifetime consequences of coping with medical expenses. Under certain assumptions, but not otherwise, it and the Flores et al. approaches are identical, and both are operationalizable without data on how households finance their medical expenses. 2018-11-26T19:47:34Z 2018-11-26T19:47:34Z 2018-11 Working Paper http://documents.worldbank.org/curated/en/102911543240444440/Catastrophic-Medical-Expenditures-Reflections-on-Three-Issues http://hdl.handle.net/10986/30878 English Policy Research Working Paper;No. 8651 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
MEDICAL EXPENSES IMPOVERISHMENT FINANCIAL HARDSHIP FINANCIAL PROTECTION MEDICAL CARE COST HEALTH FINANCE |
| spellingShingle |
MEDICAL EXPENSES IMPOVERISHMENT FINANCIAL HARDSHIP FINANCIAL PROTECTION MEDICAL CARE COST HEALTH FINANCE Wagstaff, Adam Catastrophic Medical Expenditures : Reflections on Three Issues |
| relation |
Policy Research Working Paper;No. 8651 |
| description |
The ‘basic’ approach to
'catastrophic' medical expenses (where
expenses are related to consumption or income) indicates
whether expenses cause a large percentage reduction in
living standards. By contrast, the 'ability-to-pay
approach' (where expenses are related to
consumption or income less actual expenses on nonmedical
necessities or an allowance for them) does not indicate
whether expenses are large enough to undermine a household’s
ability to purchase nonmedical necessities. If the
individual is a borrower after a health shock, the
income-based ratio will exceed the consumption-based ratio,
while the opposite is true when the individual continues to
be a saver after a health shock. In the first case, both
ratios will exceed Flores et al.'s more
theoretically correct ratio, with the income-based ratio
overestimating it by more. But if the individual is still a
saver even after a health shock, the income-based ratio will
overestimate Flores et al.'s ratio by less and may
not overestimate it at all. A lifetime money metric utility
approach can capture the lifetime consequences of coping
with medical expenses. Under certain assumptions, but not
otherwise, it and the Flores et al. approaches are
identical, and both are operationalizable without data on
how households finance their medical expenses. |
| format |
Working Paper |
| author |
Wagstaff, Adam |
| author_facet |
Wagstaff, Adam |
| author_sort |
Wagstaff, Adam |
| title |
Catastrophic Medical Expenditures : Reflections on Three Issues |
| title_short |
Catastrophic Medical Expenditures : Reflections on Three Issues |
| title_full |
Catastrophic Medical Expenditures : Reflections on Three Issues |
| title_fullStr |
Catastrophic Medical Expenditures : Reflections on Three Issues |
| title_full_unstemmed |
Catastrophic Medical Expenditures : Reflections on Three Issues |
| title_sort |
catastrophic medical expenditures : reflections on three issues |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/102911543240444440/Catastrophic-Medical-Expenditures-Reflections-on-Three-Issues http://hdl.handle.net/10986/30878 |
| _version_ |
1764473141021638656 |