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Table 2 Comparison of the two methods used in the estimation of catastrophic health care expenditure

From: Catastrophic health care expenditure in Myanmar: policy implications in leading progress towards universal health coverage

MethodNumeratorDenominator Capacity to payMeasure of basic needsEquivalence scale usedCatastrophic expenditure thresholds
Standard WHO approach aOut-of-pocket-paymentTotal 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 percentilesWHO standard equivalence scale
equivalence size = household size 0.56
20%,
30%,
40%
Modified WHO approach aOut-of-pocket-paymentTotal household expenditure minus a standard amount representing household basic needs based on foodAverage spending on food per (equivalent) person among households whose food spending is between the 45th and 55th percentilesOECD equivalence scale
equivalence size = 1 + 0.7*(number of adults − 1) + 0.5*(number of children under 5 years)
20%,
30%,
40%
  1. a Source: (Xu 2005)