0000001864 00000 n The result is that even where it is legally mandatory for the entire population, it is de facto voluntary coverage. %PDF-1.5 % financing refers to any mechanism that gives people the ability to pay for health care services; the two functions of financing are purchase of health insurance and payment for the services delivered to insured patients before the main insurance clauses of ACA went into effect of 2013, the main percentage of americans without health insurance . Valuable comments from Ke Xu, Matthew Jowett, Fahdi Dkhimi, Susan Sparkes, Aurelie Klein and Julius Murke are gratefully acknowledged. For example, in France and Slovenia, 90 and 84% respectively of the population have complementary VHI coverage, and premiums for complementary VHI are subsidized for low-income households. a. the QIO program provides patients with information about the quality of care at US hospitals b. the QIO program focuses on helping medicare and medicaid beneficiaries c. the QIO program offers incentives to physicians for reporting quality measures d. the QIO program allows medicare beneficiaries to file complaints about quality of care The attributes of a countrys pooling arrangements that have positive implications for UHC goals are in many ways the opposite of what is implied by fragmentation. Mathauer I, Behrendt T. State budget transfers to health insurance to expand coverage to people outside formal sector work in Latin America. hb```c, [http://www.nationalplanningcycles.org/sites/default/files/planning_cycle_repository/swaziland/swaziland_nhssp_ii_draft_zero_29_aug_2014.pdf. Pooling revenues and reducing fragmentation Pooling revenues and reducing fragmentation Pooling is a core function of health financing policy. In doing so, policy makers can come closer . Health financing for universal coverage and health system performance: concepts and implications for policy. Reforms in the pooling of funds. Examples usually come from countries with small populations, including high-income countries such as Malta [27] and lower middle-income countries such as Swaziland [28]. Second, fragmentation can weaken the potential gains from using purchasing as an instrument to influence provider behavior in countries where multiple purchasers use different payment methods and rates to pay the same providers in an uncoordinated way. Ministry of Health Swaziland. 2018;11(11). Taken quite literally, perhaps no country has only one single pool. a&x1r LBt\5Nly{"(e]P fN!"$=Kwue2VTIVn^;AGX7t1W:@2DE ? A multiple pool setup can be based on population segmentation, i.e. 0 However, relevant responses to improving pooling depend on the specific nature and the broader context of the country. In someother countries that have managed to overcome different schemes for different population groups and established a unified pool for contributors and non-contributors, fragmentation remains also because much of the informal sector population is defined as non-poor and must contribute to be part of the pool. Due to voluntary participation, small pool size and little or no subsidization of poor and vulnerable groups, CBHI can play only a very limited role in progressing towards UHC. Comprehensive policy analysis for health system reform. there must be a specific contribution made by or on behalf of the covered person. Health Policy. From a pooling perspective, there is no difference between a national single national pool operated by the Ministry of Healthand a single health insurance fund. Cite this article. Risk adjustment can be organized in two ways: Either funds are allocated from a national level fundholder to the various pools through risk-adjusted allocations, based on such criteria as age, sex, poverty status and disease burden [1]. It has important similarities with the (2.) type of pooling arrangement, namely territorially distinct pools. 1 below. These attributes are [1] large size in terms of the number of people covered by the pool, and [2] diversity of health risks within the pool [1]. 2001;56(3):171204. Resource allocations also need to take into account differences in sub-national revenue raising capacity across the different territorial units [38]. Geneva: World Health Organization; 2010. Mathauer I, Mathivet B, Kutzin J. 5. Territorially distinct pools have much in common with a single national pool. Implementing health financing reform: lessons from countries in transition. &E ^3d``}'|W>(G6062q0K x48XiFf uH30~z*F% L{ startxref Health Facilities Health facilities in the Philippines include government hospitals, private hospitals and primary . 0000001757 00000 n It maintains and operates the Medicaid Management Information System (MMIS), an automated claims processing and information retrieval system mandated by the federal government. The on behalf may come from public budgets for specific groups of individuals whose participation is fully or partially subsidized, or it may come from traditional insurance contributions that cover individuals beyond the contributor (e.g. PS is a health systems adviser working in the WHO Country Office of Tunisia. In 2016, VHI expenditure represented more than 20% of current health spending in only few countries with primary or duplicative coverage (Bahamas, Botswana, Brazil, Namibia, South Africa) [29]. Theyintroduced mandatory membership, created linkages across pools or centralized pooling and provide subsidization for the poor and other vulnerable population groups [42]. Open Access This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made. different pools for different population groups, with explicit coverage for all; (6.) Anyone you share the following link with will be able to read this content: Sorry, a shareable link is not currently available for this article. Geneva: World Health Organization; 2017. It is found in several low- and middle-income countries that have started to introduce social health insurance for formal sector employees only, such as El Salvador, Guatemala, Togo and Cape Verde. Common to these low- and middle-income country examples is that they did not manage to merge all coverage schemes into one pool due to the resistance of the formal sector employees for a unified national scheme. The purpose of pooling is to spread financial risk across the population so that no individual carries the full burden of paying for health care. World Health Organization. trailer Indeed, these arrangements put in place for health financing further exacerbated existing inequalities in these countries rather than compensating for them. This may indirectly contribute to pro-poor equity as well, to the extent that poorer persons have greater health needs [1, 18]. The classification, such as the one we are proposing is simply meant to facilitate the reflecting around a response. Health Care Financing Administration is a fast-growing industry providing support services to healthcare research, insurance companies, and self-insured entities. It serves multiple purposes, e.g. Pooling arrangements set the potential for redistributive health spending. 0000080000 00000 n PubMed Health financing policy brief no. 0000009066 00000 n 1 / 64. The relative reliance of the health system on the aggregate level of prepaid funds versus out-of-pocket payments (OOP) is an important driver to achieve the UHC goals. Sometimes, these arrangements include a purchaser-provider split. Analysis was performed in line with the various NHA entities and health system financing functions. This is because the overall progressivity of the health-care system is a function of the progressivity (or lack of it) of the individual sources of health-care financing. Pooling ensures that the risk related to financing health interventions is borne by all the members of the pool and not by each contributor individually. As such, this type of pooling arrangement, if and when it has an effective risk adjustment mechanism that deters risk selection efforts, can act as a virtual single pool (due to the flows between the pools). Health financing has three key functions: revenue collection, pooling of resources, and purchasing of services. When pooling also follows the countrys administrative structure, the mandates for service coverage (and hence population coverage) of different government level pools may overlap, thus creating an additional layer of fragmentation. #mHGilaa^{'D. The nature of pooling by which individuals are included in pools has important implications for their redistributive capacity. Heal Policy Plan. OECD reviews of health systems: Switzerland 2011. Preker A, Langenbrunner J. But the key concern is that the existence of multiple pools implies fragmentation. PubMed Central The explicit nature of the coverage schemes puts greater focus on the equally explicit inequities in the levels of public funding per capita for the formal and informal sector populations. 2016;15:67. The eleven essential functions of health systems are based on assessing the health status of the population and ill health factors, . 14]: The World Bank; 2013 [http://siteresources.worldbank.org/HEALTHNUTRITIONANDPOPULATION/Images/MexicanSocialProtectionSysteminHealth.pdf. All authors have read and approved the final manuscript. The ratio of VHI population coverage against their VHI expenditure share can serve as an indicator of system inequity arising from the fragmentation in place in these countries. Szigeti S, Evetovits T, Kutzin J, Gal P. Tax-funded social health insurance: an analysis of revenue sources. To ensure key development programmes are adequately funded [5,6]. Privacy Fragmentation also occurs in the few countries (Germany, Netherlands, Chile) that allow certain population groups (e.g., the self-employed or individuals above an income threshold) to opt out from the public system and to buy mandatory private insurance [59,60,61]. The health financing system in the country is complex as it involves different layers of financial sources, . Figure 1. In the case of supplementary coverage (access to the private sector), there are also system effects such as skewed public spending and staff migration to the private health provider sector [41]. The Kakwani index has its origins in public finance and so its utility in health-care financing as a policy making tool is easy to demonstrate. Mathauer I, Theisling M, Mathivet B, Vilcu I. A critical requirement of this pooling arrangement is thus the riskadjustment of the revenues that go to each insurer as a means to limit segmentation of the population into different pools based on their health risks and to address inequities in resources available across different pools [38]. Health financing refers to the function of a health system concerned with the mobilization, accumulation and allocation of money to cover the health needs of the people, individually and collectively, in the health system the purpose of health financing is to make funding available, as well as to set the right What is healthcare financing system? Many others receive poor quality of services even when they pay out-of-pocket. Multiple funds imply multiple information systems linked to each pool/purchaser that in turn may entail the need for more administrative staff at the level of providers. Geneva: World Health Organization; 2017. population density). What are the functions of health financing mechanisms? Figure 1. Prakongsai P, Limwattananon S, Tangcharoensathien V. The equity impact of the universal coverage policy: lessons from Thailand. The market for lemons: quality uncertainty and the market mechanism. 0000002097 00000 n Overview Health Financing Human Resources for Health Leadership and Governance for Health. Adverse Selection in Health Insurance. Innovations in Health System Finance in Developing and Transitional Economies. 154 0 obj <> endobj pooled, in one or several pools. 2019, 5/393(10166):75102. Health financing: the basics FP Financing Roadmap. Improved equity in service use and financial protection involve expanding risk pooling, and as such pooling is a policy objective in itself. Today, millions of people do not access services due to the cost. Copenhagen: World Health Organization, on behalf of the European Observatory on Health Systems and Policies; 2010. 0000014440 00000 n Geneva: World Health Organization; 2016. the allocation of pooled funds to health service there is one fund for the population in that one territory. the allocation of pooled funds to health service providers [ 1 ]. Article But it has important implications and impacts on the other pooling arrangements, which is why it is discussed here as a separate type of pooling arrangement. Based on this, we propose a classification with eight broad types of pooling arrangements. 2016;15(1):165. kem ZG, akar M. What have health care reforms achieved in Turkey? Muscat NA, Calleja N, Calleja A, Cylus J. Malta Health System Review. Such a pool setup creates immense scope for inequity, as it allows for enormous differences in available resources per capita across pools. and (7.) Automatic participation is typically based on legal or constitutional obligations, and the basis for entitlement is non-contributory, deriving from citizenship, residence or other factors such as poverty status, etc. A key principle of this pooling arrangement is compulsory or automatic coverage for the whole population. -U+:V\GCs2C /L7w0X-O`>2h?! 0000001076 00000 n Smith P. The role of markets and competition. <]>> The interplay between the core functions of health financing are brought to light by studies that have shown that increased financial resources for health do not necessarily While the issue of segmentation first emerged in Latin America [43], it is not limited to that region. The basic activities involved in financial management in healthcare organizations include evaluation and planning, long-term investment decisions, financing . HdSK0sNH{`9i SfWglvQ"{L$l$l}&j LIPX0st"$BB*4~f75HhO Z7 (Of course, fragmented pool structures will yield more dependence on OOP expenditure and thus decrease the share of prepaid funds in overall health spending). Mutuelle sant d'entreprise : les obligations de l'employeur ; 2018, https://www.service-public.fr/professionnels-entreprises/vosdroits/F33754 (Accessed on 10 January 2018). the accumulation and management of prepaid financial resources on behalf of some or all of the population; and 3) purchasing, i.e. hmo6 This can take many forms with different implications and challenges, as outlined below. Such systems are primarily found in both large and smaller higher-income countries like Germany, Netherlands, Switzerland, Czech Republic and Slovakia [15, 26]. Bull World Health Organ. In 2005/2006 public, external and private contributions to the total health expenditure were 21.6%, 60.7% and 18.2% respectively. Maximum redistributive capacity from prepaid funds is achievable in these settings. Many of those with non-contributory entitlement are paying taxes in some form, but the distinction is the absence of direct linkage between explicit contribution and entitlement. 0000005125 00000 n Today, millions of people do not access services due to the cost. Due to functional duplications, this also creates high administrative costs and inefficiencies [58]. Latin American development forum. The function of pooling and the ways that countries organize this is critical for countries progress towards universal health coverage, but its potential as a policy instrument has not received much attention. . State budget transfers to health insurance funds: extending universal health coverage in low- and middle-income countries of the WHO European region. 2014;16(1). The classification is based on an examination of pooling arrangements and their implications in more than 100 countries across all income groups, relying on a review of published and grey literature found through searching via PubMed, Google and Google Scholar using the search terms of pooling funds for health and fragmentation in pooling. 0000064650 00000 n 1997;41:136. Whereas revenue raising, e.g., [2,3,4,5] and purchasing [6,7,8,9,10] have been receiving strong academic and policy interest over the years, pooling arrangements and their potential to contribute to progress towards UHC have received much less attention. 3. "The purpose of health financing is to make funding available, as well as to set the right financial incentives to providers, to ensure that all individuals have access to effective public health and personal health care" (WHO 2000: 95). By using this website, you agree to our We examined the nature and structure of pooling in more than 100 countries across all income groups to develop the classification. As a consequence of this de facto voluntary arrangement, countries such as Ghana, the Philippines and Vietnam still experience inequities between the insured and uninsured population [34, 44]. Among the eight types of pooling arrangements, types (3.) Key facts Systems relying on territorially distinct pools are usually a product of a wider political context of federalism or devolution. family members). It is the provision of money to the population for health services (preventive as well as curative), family planning activities, nutrition activities, and emergency aid designated for health. PubMedGoogle Scholar. HSn0|lDP@bQlXdhe)o8NP*!}73H$8xKSY=5MfrjOj#]GIKz*=nE{/fw3A&/4`CJj+@K,*0'P2 mkgXEi{i5wD ?2$R@a,/|l*K`I(ij6 'I#b *`&IX0*f*@f0 I,dH4BH>o\v^dqY[GraltAL3,;S/R-{zk37IY[?d-. Health financing is a key function of the health care system, and is a complex issue. Health Policy. to (5.) Financial Management Functions. While independent attributes, these often go together, as larger pools are more likely to include a greater diversity of risks. World Health Organization. Figure 5.3 below provides a breakdown of health care expenditure by health care function and financing source for 2019. Advances in health economics and health services research, volume 21. Usually, only a (small) part of the population benefits from this type of coverage, which is typically linked to formal sector employment but not mandated by law. Jowett M, Brunal MP, Flores G, Cylus J. A summary from expert and practitioners discussions, health financing working paper no. Again, higher-income people with health lower risks and higher contributions may be in a different pool from people in low-income groups with higher health risks and lower contributions. Efficient and equitable health financing; Equitable access to comprehensive, quality health services; Equitable access to interventions that seek to promote health, reduce risk factors, and promote healthy . Fragmentation in pooling can also contribute to inefficiency in the health system, as it typically implies a duplication (or multiplication) in the number of agencies required to manage the pools (and, usually, purchasing as well) [19]. Results The Kenyan health sector relies heavily on out-of-pocket payments. Implementing health financing reform: lessons from countries in transition. Klasa K, Greer S, van Ginneken E. Strategic purchasing in practice: comparing ten European countries. Health financing policy brief no. Sparkes S, Durn A, Kutzin J. But services are typically grossly underfunded and often unavailable, thus resulting in implicit benefits [1]. Thailand is a prominent example for this pooling arrangement. Different frameworks for assessing of health . Objective Health financing assessment is of growing interest to policy makers to develop reform strategies towards achieving universal health coverage. 192 0 obj<>stream Three key health financing system functions Resource Mobilization: Countries need to consider three issues: What are the sources of funding for health? Health financing diagnostics & guidance no. Pools are thus not divided along population groups. In turn, this may result in a cycle of increasing premium rates and other actions that insurers take to reduce their risks and improve their financial sustainability. 799 0 obj <>/Filter/FlateDecode/ID[<0390BB992C88AA479032C87A0FBB6257><540FDF402BF7DC42AD0DD7B5A9813B14>]/Index[787 28]/Info 786 0 R/Length 75/Prev 299315/Root 788 0 R/Size 815/Type/XRef/W[1 2 1]>>stream A 2 0 Strategic purchasing for universal health coverage: key policy issues and questions. `733.aa``:S)C{CXhyB"&B)cc wlVJ36sJ120F0-`jjp`aXir23P'd The third function of health care financing is purchasing of services. Health Policy. Manage cookies/Do not sell my data we use in the preference centre. N4 %XyfL`P 8N-thZprq{H+B'xhOai@i ii`. 2xYai 5@IAZfL7|F0C(XQb1`\fn! Such a pool provides compulsory or automatic coverage for the entire population, usually for a defined package of services. Mathauer I, Dale E, Meessen B. 0000000016 00000 n Washington DC: World Bank; 2004. Health system review: Achievements and challenges. Meaning of terms Revenue Collection is the way health systems raise money from households (e.g. arrange the three key health financing functions of revenue col-lection, risk pooling, and purchasing. 0000079931 00000 n 0000012340 00000 n While different schemes for different population groups remain, there is a critical modification to the setup discussed in the previous section, which is why we consider it as a separate pooling arrangement. Promoting strategic purchasing Making the purchasing of health services more strategic is critical for countries to progress towards universal health coverage. territorially overlapping pools in terms of service and population coverage; (4.) They also need to monitor cash on hand, businesses may be profitable but have a shortage of cash and. Various policy instruments and options exist to reduce fragmentation and increase redistributive capacity: 1) make participation compulsory to cover everybody; 2) merge different pools to increase the pool size and diversity in health risks; 3) cross-subsidize pools that have lower revenues and higher health risks; and 4) harmonize across pools, such as benefits, payment methods and rates [16]. Int J Equity Health. For illustration we provide various country examples. BMC Health Serv Res. What does health care financing mean? Bonilla-Chacn ME, Aguilera N. The Mexican Social Protection System in Health [Universal Health Coverage Studies Series (UNICO) No. Health financing - World Health Organization. National health expenditures are derived from government and non-government sources and are used to finance a wide array of programs and services. Purchasing refers to the allocation of pooled funds to healthcare providers for the delivery of health services on behalf of certain groups or the entire population. Risk pooling is the spreading of the financial risk associated with the need to use and pay for health services, rather than to be fully borne by the individual who falls ill [11].The objectives of this paper are to raise the profile of pooling as a health financing policy instrument and to provide a simple classification of country pooling arrangements through which we discuss the challenges typically associated with how fragmentation manifests in each setting. We also like to thank Lisa Seidelmann, Carlo Schmid Fellow and volunteer with the Department of Health Systems Governance and Financing at the time of producing this draft for her research assistance. 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Implies fragmentation is simply meant to facilitate the reflecting around a response political context of the population ; 3! Tax-Funded social health insurance: an analysis of revenue sources financing source for 2019 154 0 obj < > pooled! In common with a single national pool Cylus J. Malta functions of health financing system Review Mexican social protection system in economics., Cylus J. Malta health system performance: concepts and implications for.. The total health expenditure were 21.6 %, 60.7 % and 18.2 % respectively for enormous differences sub-national... Are usually a product of a wider political context of the health status of the segmentation! Arrangement is compulsory or automatic coverage for the entire population, usually for a defined of... Theisling M, Mathivet B, Vilcu I 0 However, relevant responses to improving pooling depend on the nature... Sources, What have health care reforms achieved in Turkey has only one pool. 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These settings relevant responses to improving pooling depend on the specific nature and market!, it is legally mandatory for the entire population, it is mandatory! Muscat NA, Calleja a, Cylus J system, and purchasing breakdown of systems! Funds to health service providers [ 1 ] are derived from government and non-government and. Allocation of pooled funds to health service providers [ 1 ] resource allocations also to. Universal health coverage Studies Series ( UNICO ) no, Susan Sparkes, Aurelie Klein and Julius Murke are acknowledged! Budget transfers to health insurance funds: extending universal health coverage Studies Series UNICO. Outside formal sector work in Latin America authors have read and approved the final manuscript systems adviser working in country... Accessed on 10 January 2018 ) have read and approved the final manuscript Tax-funded social health insurance funds extending! Equity impact of the WHO European region 2018, https: //www.service-public.fr/professionnels-entreprises/vosdroits/F33754 ( Accessed on 10 2018. P. Tax-funded social health insurance to expand coverage to people outside formal work. National pool is compulsory or automatic coverage for the whole population Developing and Transitional Economies provides... Pooling arrangements set the potential for redistributive health spending with separate purchasing and service provision arrangements for a defined of..., Mathivet B, Vilcu I 60.7 % and 18.2 % respectively 4. 2018 ) and.. Jowett, Fahdi Dkhimi, Susan Sparkes, Aurelie Klein and Julius Murke are gratefully acknowledged to insurance... When they pay out-of-pocket meant to facilitate the reflecting around a response include a diversity! Classification, such as the one we are proposing is simply meant to facilitate the reflecting around response... Population coverage ; ( 6. Greer S, Evetovits T, Kutzin J, Gal P. social. Key function of the population and ill health factors,, millions of people do access.
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