1. Health Expenditure Growth under Single-Payer Systems: Comparing South Korea and Taiwan
- Author
-
Hyun-Hyo Jin, Shou-Hsia Cheng, Robert H. Blank, and Bong-Min Yang
- Subjects
Adult ,National Health Programs ,Gross Domestic Product ,Economics, Econometrics and Finance (miscellaneous) ,Population ,Resource distribution ,Gross domestic product ,03 medical and health sciences ,0302 clinical medicine ,Universal Health Insurance ,Health care ,Per capita ,Humans ,030212 general & internal medicine ,Social determinants of health ,Single-Payer System ,Socioeconomics ,education ,Pharmacology, Toxicology and Pharmaceutics (miscellaneous) ,Aged ,education.field_of_study ,Insurance, Health ,business.industry ,030503 health policy & services ,Health Policy ,Economic statistics ,Middle Aged ,Business ,Health Expenditures ,0305 other medical science ,Delivery of Health Care ,Developed country - Abstract
Objective Achieving universal health coverage has been an important goal for many countries worldwide. However, the rapid growth of health expenditures has challenged all nations, both those with and without such universal coverage. Single-payer systems are considered more efficient for administrative affairs and may be more effective for containing costs than multipayer systems. However, South Korea, which has a typical single-payer scheme, has almost the highest growth rate in health expenditures among industrialized countries. The aim of the present study is to explicate this situation by comparing South Korea with Taiwan. Methods This study analyzed statistical reports published by government departments in South Korea and Taiwan from 2001 to 2015, including population and economic statistics, health statistics, health expenditures, and social health insurance reports. Results Between 2001 and 2015, the per capita national health expenditure (NHE) in South Korea grew 292%, whereas the corresponding growth of per capita NHE in Taiwan was only 83%. We find that the national health insurance (NHI) global budget cap in Taiwan may have restricted the growth of health expenditures. Less comprehensive benefit coverage for essential diagnosis/treatment services under the South Korean NHI program may have contributed to the growth of out-of-pocket payments. The expansion of insurance coverage for vulnerable individuals may also contribute to higher growth in NHE in South Korea. Explicit regulation of health care resource distribution may also lead to more limited provisioning and utilization of health services in Taiwan. Conclusion Under analogous single-payer systems, South Korea had a much higher growth in health spending than Taiwan. The annual budget cap for total reimbursement, more comprehensive coverage for essential diagnosis and treatment services, and the regulation of health care resource distribution are important factors associated with the growth of health expenditures.
- Published
- 2018
- Full Text
- View/download PDF