<div dir="ltr"><br><p>In a <a href="http://policy-practice.oxfam.org.uk/publications/universal-health-coverage-why-health-insurance-schemes-are-leaving-the-poor-beh-302973" target="_blank">new report</a>
published today, Oxfam is warning that health insurance schemes
introduced in the name of universal health coverage (UHC) are excluding
the majority of people and leaving the poor behind.</p>
<p>While the new growing momentum for UHC is welcome there is a concern
that the mistakes of history could be repeated. The optimism in 1978
following the Alma Ata ‘Health for All’ declaration was quickly replaced
by disillusionment as influential donors failed to act on the shared
vision of comprehensive universal primary health care. They financed
low cost selective interventions instead. Today, a similar danger exists
as we witness a wide range of ‘business as usual’ interventions being
rebranded as ‘UHC’ despite them bearing little resemblance to the <a href="http://www.who.int/whr/2010/whr10_en.pdf" target="_blank">World Health Organisation’s UHC principles.</a></p>
<p>This is certainly the case for health financing. Our new report takes
a critical look at the almost exclusive focus of some donors and low
and middle income countries on contributory insurance schemes as <em>the way</em>
to achieve UHC. Such schemes fail to provide coverage for the majority
of citizens and serve to divert attention away from needed reforms to
national and international tax systems that could raise significant
additional revenues for health.</p>
<p>Voluntary insurance – private and community-based – has never worked
to achieve UHC yet is still being widely promoted. India’s voluntary
RSBY insurance scheme for people below the poverty line is widely
praised as a success but offers limited financial protection and has
skewed public resources to curative rather than preventative care.</p>
<p>For those who recognise the pitfalls of voluntary schemes, social
health insurance (SHI) has emerged as the model of choice. SHI has
worked to achieve UHC in a number of high-income countries, but attempts
to replicate in poorer countries have proved unsuccessful. In practice
SHI schemes usually start with the small number of easy-to-reach
formally employed and then struggle to scale up beyond. Premiums are too
expensive for most and schemes become <em>de facto</em> voluntary,
leading to large scale exclusion. Ten year old national insurance
schemes in Tanzania and Ghana cover only 17% and 36% of citizens
respectively. Kenya’s National Hospital Insurance Fund – established
nearly 50 years ago – today insures just 18 per cent of Kenyans.</p>
<p>Hopes that insurance contributions from those outside of formal
employment would raise significant additional revenue have also not been
realised. In Ghana, premiums paid by the informal sector contribute
just five per cent towards the cost of the national scheme. Governments
also face huge bills to cover the SHI contributions of their workers.
The Government of Tanzania spent $33m on employer contributions in
2009/10; this equated to $83 per employee – six times more than it spent
per person, per year on health for the general population.</p>
<p>Instead of importing inappropriate health financing models from
high-income countries, our paper recommends that developing country
governments look to learn from the increasing number of home-grown UHC
success stories in other, more comparable countries.</p>
<p>The countries making most progress towards UHC agree that entitlement
to health care should be based on citizenship and/or residency (not
employment status or financial contribution) and while specific journeys
differ, these countries fall into two broad camps. First there are
examples of countries at all income levels, including Sri Lanka,
Malaysia, and Brazil, which use tax revenues to fund UHC. A second
option increasingly being adopted by another set of successful UHC
countries, including Thailand, Mexico, and Kyrgyzstan, is to collect
insurance premiums only<strong> </strong>from those in formal salaried
employment, and to pool these where possible with tax revenues to
finance health coverage for the entire population. According to WHO,
only eight of 49 low-income countries will be in a position to fully
finance UHC from domestic resources in 2015 so international aid will
continue to play a crucial role.</p>
<p>The focus on health insurance seems to have served as a distraction
for the international health community from the key ingredient for all
UHC success stories – public financing. Rather than focus efforts on
collecting contributions from people who are too poor to pay,
governments and donors should look to reform national and international
tax systems in order to generate significant and urgently needed revenue
for health. Oxfam estimates that strengthening tax administration alone
could raise an additional 31 per cent of tax revenue across 52
developing countries, amounting to $269bn in increased domestic
resources. Enough to double health budgets in these countries.</p>
<p>The growing momentum for UHC is welcome, exciting, and challenging.
However, if we are to heed World Bank President Jim Kim’s warning that
UHC could easily become a ‘toothless slogan’, then UHC advocates must
stand true to the WHO UHC principles to reduce out of pocket payments,
introduce mandatory pre-payment, create large risk pools and scale up
public financing to cover those who cannot afford to contribute. To
these we add that entitlement to health coverage should be based on
citizenship and/or residence, and that progress can only be considered
progress if women and men living in poverty benefit at least as much as
the better off at every step of the way towards UHC.</p>
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