The Country’s Total Health Spending Contributes 5.5 Percent to the Economy in 2022
The country’s total health expenditure showed improvements from 2005 to 2007, but at decelerating growth rates both at current and constant prices. At current prices, the total outlay for health went up from PHP198.4 billion in 2005 to PHP234.3 billion in 2007, registering a growth rate of
- The level of health expenditure in 2005 to 2007 was within the target of 3 to
4 percent of GNP set as part of the National Objectives for Health 2005-2010. However, the ratio exhibited a decreasing trend from3.4 percent in 2005 to3.2 percent in 2007.
- Pinoy households continued to bear the heaviest burden in terms of spending for their health needs as private out-of-pocket surpassed the
50 percent mark in health expenditure share in 2006, reaching54.3 percent in 2007. Private households thus contributed an estimated PHP97.6 billion to the total health expenditure in 2005 and PHP127.3 billion in 2007.
- Government came in a far second in health spending contribution, with the national government and the local government units (LGUs) footing almost equal shares of
13.0 percent and13.3 percent in 2007, respectively. It is worth noting that the LGUs spent more than the national government in 2006 and 2007. Total government expenditure on health care goods and services increased from PHP58.5 billion in 2005 to PHP61.5 billion in 2007, registering an annual growth of only2.6 percent.
- Health expenditure from social insurance barely grew from PHP19.4 billion in 2005 to nearly PHP20.0 billion in 2007, indicating an average annual growth of only
1.6 percent. Thus, instead of picking up as targeted, the social insurance share in health spending went down from9.8 percent in 2005 to only 8.5 two years later.