What is defined as "catastrophic health expenditure"?

"Catastrophic health expenditure" refers specifically to out-of-pocket healthcare expenses that exceed a certain threshold, which often results in significant financial hardship for individuals or families. This concept recognizes that when healthcare costs become excessively high relative to a person's income or financial resources, it can lead to adverse economic consequences, including the inability to afford other basic needs such as food, housing, or education.

This definition highlights the financial burden on individuals when healthcare expenses surpass their capacity to pay, making it a critical issue in discussions about healthcare access and affordability. In many contexts, such expenditures are a key indicator of inequities in health systems, emphasizing the need for policies that protect vulnerable populations from financial ruin due to healthcare costs.