Paying Out-of-Pocket for Health Care in Asia: Catastrophic and Poverty Impact

Out-of-pocket (OOP) payments are the principal means of financing health care throughout much of Asia. The paper describe the magnitude and distribution of OOP payments for health care in 14 countries and territories accounting for 81% of the Asian population. The focus is on expenditures that may be considered catastrophic, in the sense that they absorb a large fraction of household resources, and on the impoverishing effect of payments. Catastrophic impact is measured by the prevalence and intensity of high shares of OOP in total spending and in non-food expenditure. Impoverishment is measured by comparing poverty headcounts and gaps before and after OOP health payments. Presented here is the first cross-country comparisons of the impoverishing effect of OOP payments measured against the international poverty standards of $1 and $2 per person per day. [Equitap WP 2]