Measuring financial protection in health in the United States

Hugh R. Waters, Gerard F Anderson, Jim Mays

Research output: Contribution to journalArticle

Abstract

One rationale for health insurance coverage is to provide financial protection against catastrophic health expenditures. This article defines a lack of financial protection as household spending on health care when: (1) out-of-pocket (OOP) health expenditures exceed 10% of family income; (2) out-of-pocket expenditures exceed an absolute level of US$ 2000 per family member on an annual basis; and (3) combined out-of-pocket and prepaid health expenditures exceed 40% of family income. The article explores how the likelihood of households in the United States surpassing these thresholds varies by income level, extent of insurance coverage, and the number of chronic conditions. The results show clearly that there is a lack of financial protection for health services for a wide segment of the US population - particularly so for poor families and those with multiple chronic conditions. The results are placed in an international context. Similar studies in other countries would allow for more in-depth comparisons of financial protection than are currently possible.

Original languageEnglish (US)
Pages (from-to)339-349
Number of pages11
JournalHealth Policy
Volume69
Issue number3
DOIs
StatePublished - Sep 2004

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Health Expenditures
Health
Insurance Coverage
Health Insurance
Health Services
Delivery of Health Care
Population

Keywords

  • Catastrophic spending
  • Financial protection
  • Financial shocks
  • Health expenditures

ASJC Scopus subject areas

  • Public Health, Environmental and Occupational Health
  • Health Policy

Cite this

Measuring financial protection in health in the United States. / Waters, Hugh R.; Anderson, Gerard F; Mays, Jim.

In: Health Policy, Vol. 69, No. 3, 09.2004, p. 339-349.

Research output: Contribution to journalArticle

Waters, Hugh R. ; Anderson, Gerard F ; Mays, Jim. / Measuring financial protection in health in the United States. In: Health Policy. 2004 ; Vol. 69, No. 3. pp. 339-349.
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