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The 2021 Global monitoring report on financial protection in health shows that before the COVID-19 pandemic, the world was off-track to reduce financial hardship due to health expenditures because trends in catastrophic health spending were going in the wrong direction and the number of people incurring impoverishing health spending remained unacceptably high (Chapter 1). Chapter 2 summarizes emerging evidence on the consequence of the pandemic and the related macroeconomic and fiscal crisis that points to the likely worsening of financial protection for households, particularly as a result of declining income and consumption, along with rising poverty and inequality.
Abstract: Health systems are not just about improving health: good ones also ensure that people are protected from the financial consequences of receiving medical care. Anecdotal evidence suggests health systems often perform badly in this respect, apparently with devastating consequences for households, especially poor ones and near-poor ones. Two principal methods have been used to measure financial protection in health. Both relate a household's out-of-pocket spending to a threshold defined in terms of living standards in the absence of the spending: the first defines spending as catastrophic if it exceeds a certain percentage of the living standards measure; the second defines spending as impoverishing if it makes the difference between a household being above and below the poverty line. The paper provides an overview of the methods and issues arising in each case, and presents empirical work in the area of financial protection in health, including the impacts of government policy. The paper also reviews a recent critique of the methods used to measure financial protection.
Over the past two decades, the World Health Organization (WHO) and the World Bank have been tracking financial protection using household survey data to compare how much people spend out of pocket on health care with their household’s ability to pay. For the first time, this joint report establishes global and regional 2015 baselines for an SDG indicator of catastrophic health spending and infers from previous trends the challenges to come in protecting people from the financial consequences of paying out of pocket for the health services they need.
WHO and the World Bank are co-custodian agencies of Sustainable Development Goal (SDG) indicator 3.8.2, one of the financial hardship indicators used to track progress towards universal health coverage (UHC)(SDG target 3.8). SDG target 17.18 calls for all countries to increase the availability of disaggregated data by age and other characteristics relevant to national contexts. In response, WHO, as a normative agency, proposed in 2020 to extend the life-course approach from age groups at the individual level to the household level to monitor inequalities in financial hardship by the age structure of the household. Based on data from 47 countries with household survey estimates for 2015–2019, the “Tracking universal health coverage: 2023 global monitoring report” published by WHO and the World Bank had identified sharp inequalities in financial hardship by the age structure of the household, especially between people living in multigenerational, older and only older, and younger households. This brief aims to provide more conceptual details about the methods used to track age-related inequalities in financial hardship due to out-of-pocket health spending and presents estimates of such inequalities for more countries than were included in the 2023 UHC global monitoring report.