This metric quantifies the
impact of out-of-pocket health care expenses on poverty levels within a nation, highlighting the
vulnerability of households to financial strain from health-related costs. It encompasses two key scenarios: first, households already living on the brink of poverty—where non-health expenditures fall below the $3.65 threshold—who are driven deeper into hardship due to medical expenses. Second, it includes those whose total spending surpasses this poverty line but are effectively pushed below it when health expenditures are factored in. This indicator underscores the critical intersection of health care spending and economic stability, reflecting how seemingly manageable medical costs can exacerbate financial insecurity for families, leading to a cycle of impoverishment.
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