Social Insurance registers highest growth at 32.3 percent; Private Sources still largest source of funds on health

Reference Number: 201408SS102
Release Date:11 August 2014

Among the four major sources of funds for health, Social Insurance grew the fastest at 32.3 percent, from PhP 39,209 million in 2011 to PhP 51,863 million in 2012. This is followed by Rest of the World, which grew by 14.6 percent, Private Sources by 12.4 percent and Government by 2.7 percent

 
In terms of percentage share to the total health expenditures, Private Sources accounted for the largest share at 69.6 percent, followed by Government with 18.5 percent, Social Insurance with 11.1 percent and Rest of the World with a 0.9 percent share.
 
PHL total health expenditure grew by 12.3 percent from 2011 to 2012
 
The country’s total health expenditure expanded by 12.3 percent, from PhP 416,480 million in 2011 to PhP 467,798 million in 2012. This could be mainly attributed to the higher growth rates of all sources of funds.
 
Discounting the effect of inflation, total health expenditure grew by 8.9 percent from PhP 330,278 million in 2011 to PhP 359,568 million in 2012. 
 
Per capita health expenditure increased by 10.4 percent from 2011 to 2012
 
With the total health expenditure growing faster (12.3 percent) than the population (1.8 percent), the nominal per capita health spending went up by 10.4 percent or by PhP 455.00 - from PhP 4,392.00 in 2011 to PhP 4,847.00 in 2012. At constant 2006 prices, per capita expenditure increased by 7.0 percent or by PhP243.00 - from PhP 3,483.00 in 2011 to PhP 3,726.00 in 2012.
 
Other salient patterns and trends observed from the 2012 PNHA updates are the following:
 
  1. In terms of levels, Government health spending amounted to PhP 86,423 million in 2012; 2.7 percent higher than its PhP 84,139 million spending in 2011. 
     
  2. In 2012, the National Government spending as a percentage of the total health expenditure was estimated at 11.4 percent. This was higher than the 10.0 percent target set forth in the Health Care Financing Strategy (HCFS) 2010-2020*. On the other hand, Local Government spending estimated at 7.1 percent was below the HCFS target of 11.0 percent
     
  3. Pinoy households continued to bear the heaviest burden in terms of spending for their health needs as Private Out-of-Pocket reached 57.6 percent of the total health expenditure in 2012. This is equivalent to an estimated share worth PhP 269,419 million.
     
  4. The country’s total health expenditure as a percent of its gross domestic product (GDP) increased from 4.3 percent in 2011 to 4.4 percent in 2012. However, the 2012 figure is still lower than the 4.5 percent target set by the Department of Health as embodied in their HCFS.
Only two out of eight health care financing indicators surpassed the HCFS targets for 2012
  • Based on the goals set in the HCFS, only two of the eight health care financing indicators exceeded the targets, namely: 1) National government spending as percentage of the total health expenditure reached 11.4 percent - higher than the 10.0 percent target; and 2) National Government spending for public health amounted to PhP 20.8 billion, more than twice the target of PhP 10.0 billion.
 

Indicator

Target

PNHA Estimates

2012 Actual Vs. Target

2011

2012

National government spending as percentage of the total health expenditure

10.0

12.5

11.4

1

National government spending for public health (in billion pesos)

10.0

21.5

20.8

1

 

 
  • On the other hand, the performance of the other health care financing indicators were less impressive, to wit:

 

Indicator

Target

PNHA Estimates

2012 Actual Vs. Target

2011

2012

Total health expenditure as percentage of GDP

4.5

4.3

4.4

1

Government spending on health as percentage of total government spending

6.0

4.6

4.1

1

Out-of-pocket health spending as percentage of total health expenditure

45.0

57.7

57.6

1

Local government spending as percentage of the total health expenditure

11.0

7.7

7.1

1

Local government spending for public health (in billion pesos)

29.0

14.5

15.0

1

PhilHealth spending as percentage of the total health expenditure

19.0

9.4

11.1

1

 

 
The PNHA presents information on how much is spent on health care goods and services and who is paying for these goods and services. This information is useful in analyzing the appropriateness of the levels, composition, and structure of health expenditures, especially those of the government. The data can also help determine whether the aggregate health care spending from all sources, that is, the government, the social insurance sector, the private sector, and the rest of the world, is adequate to meet minimum requirements and identify probable areas of inefficiencies in allocating health care resources.
 
The latest estimates of the 2012 PNHA followed the revised sectoral estimation methodologies developed by the then NSCB Technical Staff, endorsed by the Interagency Committee on Health and Nutrition Statistics chaired by the DOH, and approved by the then NSCB Executive Board through Resolution No. 8, series of 2011. 
 
 

 

LISA GRACE S. BERSALES

National Statistician

 

 

 

* In the earlier release dated 11 August 2014, the Health Sector Reform Agenda (HSRA) was cited.  This was corrected on 13 Aug 2014 to Health Care Financing Strategy 2010-2020 per information provided by the Department of Health

 

 

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