Table 2 Comparison of the two methods used in the estimation of catastrophic health care expenditure
Method | Numerator | Denominator Capacity to pay | Measure of basic needs | Equivalence scale used | Catastrophic expenditure thresholds |
|---|---|---|---|---|---|
Standard WHO approach a | Out-of-pocket-payment | Total household expenditure minus a standard amount representing household basic needs spending based on food if this amount is less than or equal to actual food spending. (or) Total household expenditure minus actual food spending if the amount representing household basic needs spending is greater than the actual food spending. | Average spending on food per (equivalent) person among households whose food spending is between the 45th and 55th percentiles | WHO standard equivalence scale equivalence size = household size 0.56 | 20%, 30%, 40% |
Modified WHO approach a | Out-of-pocket-payment | Total household expenditure minus a standard amount representing household basic needs based on food | Average spending on food per (equivalent) person among households whose food spending is between the 45th and 55th percentiles | OECD equivalence scale equivalence size = 1 + 0.7*(number of adults − 1) + 0.5*(number of children under 5 years) | 20%, 30%, 40% |