Pinoy households still bear the brunt of health care spending

Reference Number: 20121220-SS1
Release Date:20 December 2012

Households continue to expend more on health as revealed in the latest updates on the Philippine National Health Accounts (PNHA) covering the period 2007-2010.  More than half of the country’s annual expenditure for health came from the pockets of households over the foear ur-yperiod.

   
For 2010, households shared 52.7 percent of the total health expenditure, while the government contributed 26.5 percent. Other private sources, such as health maintenance organizations, private insurance companies, and other private establishments shouldered 10.2 percent; social insurance and employees’ compensation, 8.9 percent; and the remaining 1.7 percent came from foreign grants.
 
Out of the PHP379.3 billion total expenditure on health for 2010, PHP298.5 billion was spent on personal health care, and PHP40 billion each went to public health care and to other health-related expenses.  The local government still spent more than the national government from 2007 to 2010. Donor support poured in 2009 and 2010, following a slump in 2007. Health benefit payments from social insurance, specifically the National Health Insurance Program, showed exceptional growth over the period.
 
These are among the highlights noted in the 2007-2010 estimates of the PNHA released by the National Statistical Coordination Board (NSCB).  Other salient patterns and trends observed from the new PNHA updates are the following:
 
  • The country's total health expenditure showed improvements from 2007 to 2010, but the growth rates revealed an uneven trend for both current and constant prices.  At current prices, the total outlay for health went up from PhP268.9 billion in 2007 to PhP379.3 billion in 2010, registering an average growth rate of 12.1 percent during the period.
  • With the total health expenditure growing faster than population, per capita health spending at current prices went up by PhP316 in 2008, PhP386 in 2009, and PhP333 in 2010.
  • It is worth noting that social insurance and the rest of the world were the fastest growing sectors in terms of health expenditure from 2007 to 2010, although their actual contributions remained way below those of government and private sources.
  • While Filipino households still bore the bulk of spending for their health needs, private out-of-pocket expenditures showed a generally decreasing trend from 55 percent in 2007 to 52.7 percent in 2010.
  • The government came in a far second to private households in terms of health spending contribution, with the national government and local government units (LGUs) footing 11.2 percent and 15.3 percent in 2010, respectively. The LGUs consistently spent more than the national government from 2007 to 2010.
  • Out of seven health care financing indicators with targets set as part of the National Objectives for Health 2005-2010, only two were within the targets for 2007 to 2010, namely total health expenditure as a percentage of gross national income and per capita health expenditure.
 
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 estimates of the 2007-2010 PNHA were computed based on the revised sectoral estimation methodologies developed by the NSCB Technical Staff, endorsed by the Interagency Committee on Health and Nutrition Statistics chaired by the DOH, and approved by the NSCB Executive Board through Resolution No. 8-2011.  The PNHA estimates for 2011 will be released in March 2013.
 
 
 
JOSE RAMON G. ALBERT
Secretary General

 

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