Report and monitor health financing indicators to achieve targets of National Health Policy 2017, Sustainable Development Goals and Universal Health Coverage. The integration of the insurance and provider functions provides an incentive for cost containment, in contrast to a third-party payment system where providers and consumers agree on the quantity of care to be supplied and a third party (the insurance agency) merely reimburses the cost. Finally, certain payment and reimbursement mechanisms have undesirable effects on specific aspects of the behaviour of service providers. While the precise definition of equity that is adopted is often not clear it generally reflects a concern to distribute health care fairly, in recognition of differences in health need. Despite broad access to health facilities, there is potential for improving utilization of services and high-quality interventions. Moreover, such willingness to pay as exists is attached primarily to curative services, and so can only extend the provision of preventive care if it is possible to re-allocate resources within the health sector. personal services, physical facilities, equipment and supplies), and may originate from business enterprises, wealthy families, religious organizations or private individuals. (Figures 1 and 2), whereas other private health expenditure declined slightly, from 4% to 3.2%, suggesting only a minor role for private nonprofit and for-profit institutions as financing sources. Individuals or groups contract with a particular HMO to cover all their health care needs (either in the HMO's own facilities or in facilities under contract to the HMO) in return for an annual payment. Public sources of funding include those which are compulsory and pre-paid; meaning paid before the need for care is identified or care is accessed. These can be related to a set of sociodemographic factors such as age, education, gender and health status; and a set of economic factors such as the monetary (e.g. Thus the agency doing the deficit financing must be endowed with the authority to impose additional taxes or fees, or be given a claim on general tax revenue in order to service the debt. High- income countries spend nearly 10% of gross domestic product on health care, with 62% of the total financed by government authorities. In some instances employers may directly finance health care for their employees. 1.3 Demand/utilization and consumer behaviour. When it is used, deficit financing is typically for specific construction projects (e.g. Their inability to pay not only reflects the largely chance initial allocations of income, but also is likely to underlie their sickness/vulnerability. to preventive rather than curative care). The main sources of revenue for private health insurance are either compulsory or voluntary prepayments, which typically take the form of regular premium payments as part of an insurance … 2. Methods of financing affect the supply or provision of services. The first step in evaluating equity, however, must be to define the equity goal of health care and so clarify the nature of the gains sought (e.g. It includes corporate-funded health services, individual contributions to commercial or community-based health insurance schemes and out-of-pocket spending. Problems with employer-financed schemes relate to the quality of care provided, the possible fragmentation of services, difficulties enforcing employer liabilities, and the fact that viability depends upon the performance of the employing agency. Even with insurance coverage, there is often a requirement for some degree of copayment, which tends to increase the amount that would otherwise have been spent on health. In the past few years there has been increasing interest in some developing countries (especially in Latin America) in health maintenance organizations (HMO), an innovative pattern of health insurance and health care organization developed in the USA. The problem with such taxes is that they are often difficult to administer, may be politically unpopular, and are also often unpopular with tax administrators because they limit their freedom of action. sources of revenues. Financing from external (foreign) sources is considered ‘public’ when the funds flow through recipient governments. Direct household expenditure is not independent of other sources of finance. of Health is usually available through the Ministry of Finance (MoF), or regional authorities in decentralized systems. Some would argue that health care payments (with taxation) should contribute to a more equal distribution of income. These may be used as sources of earmarked income for health and social services in developing countries. Given the limited resources available for health in developing countries, it is essential to raise and use resources as efficiently as possible. raising funds for health; reducing financial barriers to access through prepayment and subsequent pooling of funds in preference to direct out-of-pocket payments; and. Learning Objectives Understand and describe Major sources of public health … Household income is ultimately the source of most health care finance, but direct expenditure constitutes a specific category of financing that should be considered separately. This includes income tax, payroll tax (including mandatory social health insurance contributions) and corporate or profit tax. Some financing sources are biased with respect to the types of expenditure that they favour: favouring curative rather than preventive, or capital rather than recurrent, expenditures. 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