Financing for health: Supporting countries to make real progress towards UHC
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1 European Parliament Public Hearing on Towards a Universal Health Care system: the road to SDG 3: Financing for Health Financing for health: Supporting countries to make real progress towards UHC Matthew Jowett (PhD) Senior Health Financing Specialist WHO Geneva 15th March 2016 Brussels
2 Main messages of 3 rd ICFD (Addis) UNIVERSALITY All citizens have access to essential services. (Incrementally expand services in line with affordability) COMMITMENT TO STRONG INTERNATIONAL SUPPORT Explore funding modalities to mobilize additional resources. Also focus on stronger domestic financing. IMPORTANCE OF PUBLIC FINANCING In order to make progress on UHC. (As opposed to private financing mechanisms i.e. where people pay voluntarily) STRENGTHENING OF HEALTH SYSTEMS Ensure international health architecture builds resilience and strengthens country health systems
3 WHR 2010: Health financing for UHC Unmet need Financial protection
4 What needs to happen? More money for health In particular public More health for the money Efficiency
5 Reduce private, direct, user fees, out-of-pocket, cash payments Credit: WHO/Pierre Albouy Credit: WHO/Pierre Albouy.universal coverage cannot be achieved through private marketbased systems of user fees and private insurance, or through voluntary communitybased schemes. even tiny out-ofpocket charges can drastically reduce their (the poor s) use of needed services. This is both unjust and unnecessary. Negative effect on financial coverage Negative effect on demand / utilization / need Often damages fairness, transparency
6 Total health spending per capita Intl $ What do low-income countries currently spend? Source: WHO National Health Accounts 2013 $100 per capita public $3,322 per capita total (OECD average) $2,400 per capita public (OECD average)
7 Public and private health spending per capita Intl $ And how much is public? Source: WHO National Health Accounts 2013 $100 per capita public $2,400 per capita public (OECD average) Public Private Domestic + external
8 External funding is critical in many countries Malawi Mozambique Afghanistan Bangladesh Burundi Cameroon Egypt Ethiopia Ghana India Kenya Liberia Malawi Mozambique Nepal Nigeria Philippines Rwanda Sudan Tunisia Source: WHO National Health Accounts 2013
9 New public revenue sources? Useful additional income assuming health sector benefits Health benefits (alcohol & tobacco) Broader fiscal and institutional factors the key in long-run
10 % Government budget allocated to health Many governments need to allocate more to health 25% Source: WHO National Health Accounts % 15% 10% Abuja Declaration (2001) 20% GDP UN estimated minimum to meet MDGs 56% France Only 5.3% (when external funding excluded) 5% 0%
11 And spend existing funds more efficiently Declarations of entitlements do not automatically translate into effective coverage. Chile and Moldova have both established universal service guarantees; greater focus STEP 1 Prioritize health services e.g. high need, cost-effective intervention available, provides financial protection STEP 2 Expand access to priority services to the entire population. Remove cash payments. STEP 3 Ensure poor & disadvantaged groups actually access range of supply and demand side barriers
12 Monitoring progress on SDG 3 Ongoing discussions Currently an issue with respect to the proposed monitoring indicator for financial protection under SDG3 (UHC). Current proposed indicator: Number of people covered by health insurance or a public health system per 1000 population New proposal: Household health expenditure as % total household income/ expenditure
13 MONITORING Ensure appropriate SDG3 indicator MORE HEALTH FOR THE MONEY Wide range of supply / demand side interventions ADDIS 3 rd ICFD Universality / international support / public financing FINANCING FOR DEVELOPMENT (HEALTH) MORE PUBLIC MONEY FOR HEALTH Long-term strengthening public finances / allocations to health UNIVERSAL HEALTH COVERAGE Goals: address unmet needs / ensure financial protection UHC Need: more public money for health / more health for the money
14 Merci Thanks
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