This indicator quantifies the extent to which
out-of-pocket health expenses exacerbate poverty levels within a population, highlighting the financial vulnerability faced by households. It captures two groups: those whose essential expenditures, excluding health costs, already position them below the relative poverty threshold, who are further impoverished due to healthcare expenses; and those whose total spending initially exceeds this threshold but falls short when health expenditures are deducted. By taking into account all forms of health-related spending—ranging from preventive care to palliative services—this measure emphasizes the detrimental impact of healthcare financing on economic stability, serving as a crucial tool for assessing the effectiveness of health policies and social protection mechanisms in safeguarding families from financial shocks.
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