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      Health care payments in the asia pacific: validation of five survey measures of economic burden

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          Abstract

          Introduction

          Many low and middle-income countries rely on out-of-pocket payments to help finance health care. These payments can pose financial hardships for households; valid measurement of this type of economic burden is therefore critical. This study examines the validity of five survey measures of economic burden caused by health care payments.

          Methods

          We analyzed 2002/03 World Health Survey household-level data from four Asia Pacific countries to assess the construct validity of five measures of economic burden due to health care payments: any health expenditure, health expenditure amount, catastrophic health expenditure, indebtedness, and impoverishment. We used generalized linear models to assess the correlations between these measures and other constructs with which they have expected associations, such as health care need, wealth, and risk protection.

          Results

          Measures of impoverishment and indebtedness most often correlated with health care need, wealth, and risk protection as expected. Having any health expenditure, a large health expenditure, or even a catastrophic health expenditure did not consistently predict degree of economic burden.

          Conclusions

          Studies that examine economic burden attributable to health care payments should include measures of impoverishment and indebtedness.

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          Most cited references14

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          Too much ado about two-part models and transformation? Comparing methods of modeling Medicare expenditures.

          Many methods for modeling skewed health care cost and use data have been suggested in the literature. This paper compares the performance of eight alternative estimators, including OLS and GLM estimators and one- and two-part models, in predicting Medicare costs. It finds that four of the alternatives produce very similar results in practice. It then suggests an efficient method for researchers to use when selecting estimators of health care costs. Copyright 2004 Elsevier B.V.
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            Equity and health sector reforms: can low-income countries escape the medical poverty trap?

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              Coping with health-care costs: implications for the measurement of catastrophic expenditures and poverty.

              In the absence of formal health insurance, we argue that the strategies households adopt to finance health care have important implications for the measurement and interpretation of how health payments impact on consumption and poverty. Given data on source of finance, we propose to (a) approximate the relative impact of health payments on current consumption with a 'coping'-adjusted health expenditure ratio, (b) uncover poverty that is 'hidden' because total household expenditure is inflated by financial coping strategies and (c) identify poverty that is 'transient' because necessary consumption is temporarily sacrificed to pay for health care. Measures that ignore coping strategies not only overstate the risk to current consumption and exaggerate the scale of catastrophic payments but also overlook the long-run burden of health payments. Nationally representative data from India reveal that coping strategies finance as much as three-quarters of the cost of inpatient care. Payments for inpatient care exceed 10% of total household expenditure for around 30% of hospitalized households but less than 4% sacrifice more than 10% of current consumption to accommodate this spending.Ignoring health payments leads to underestimate poverty by 7-8% points among hospitalized households; 80% of this adjustment is hidden poverty due to coping.
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                Author and article information

                Journal
                Int J Equity Health
                Int J Equity Health
                International Journal for Equity in Health
                BioMed Central
                1475-9276
                2013
                3 July 2013
                : 12
                : 49
                Affiliations
                [1 ]Ph.D. Program in Health Policy, Harvard University, Cambridge, MA, USA
                [2 ]Department of Population Medicine, Harvard Medical School and Harvard Pilgrim Healthcare Institute, Boston, MA, USA
                [3 ]Department of Health Care Policy, Harvard Medical School, Boston, MA, USA
                Article
                1475-9276-12-49
                10.1186/1475-9276-12-49
                3716807
                23822552
                028775dd-b17b-4ab5-ab3a-9c50a2bb51e4
                Copyright ©2013 Reddy et al.; licensee BioMed Central Ltd.

                This is an Open Access article distributed under the terms of the Creative Commons Attribution License ( http://creativecommons.org/licenses/by/2.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

                History
                : 18 December 2012
                : 10 June 2013
                Categories
                Research

                Health & Social care
                out-of-pocket payment,economic burden,valid measurement,world health survey

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