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A logistic regression (logit) model was used to predict probability of catastrophic health expenditure occurrence.
After the occurrence of high medical expenditure, occurrence households had US$ 1,353 less income than non-occurrence households in 2008.
After the occurrence of high medical expenditure, occurrence households (n = 825) had US$ 1,737 less income than non-occurrence households.
This study selected households spending more than three times the average annual household medical expenditure; these households were defined as "high medical expenditure occurrence households".
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By comparison, average annual medical expenditure of occurrence households with high medical expenditure was US$ 9,193 compared to US$7844 for non-occurrence households, showing a great difference of about US$ 8,409.
(America is not alone in this; in a study of the British National Health Service, expenditures for each occurrence of an illness were 35% higher for the relatively wealthy).When the analysis is extended to younger workers, who will be more affected by recent changes in Medicare financing, the system becomes only slightly more progressive.
Table 2 shows the average annual medical expenditure and income of occurrence and non-occurrence households.
Households (n = 174) with four times the average medical expenditure were set as occurrence households.
Households (n = 125) with five times the average medical expenditure were set as occurrence households and their income was US$ 2,553 less than their comparative group.
After the occurrence of high medical expenditure in 2007, occurrence household income was US$ 2,233 and US$ 2,862 lower than the non-occurrence group in 2008 and 2009, respectively.
This study shows that the occurrence of high medical expenditure may affect household income.
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