MANILA -- The country’s chief economist is pushing more reforms to ensure the smooth implementation of Universal Health Care (UHC) law, considered a big leap towards improving the country’s health care system.
In an explainer, Socioeconomic Planning Secretary Ernesto Pernia noted that while the law already provides the mechanisms to improve health care services in the country, the actual rollout by all those concerned is crucial, starting with agency budgets.
“The DOH (Department of Health), for one, must efficiently utilize its budget to develop and strengthen health infrastructure and human resources,” Pernia, noting that the agency’s budget utilization rate was only 88 percent in 2017 based on the 2018 budget brochure of DOH.
Pernia, also National Economic and Development Authority (NEDA) Director-General, said the function of local government units (LGUs) to provide health services, which was devolved through the Local Government Code of 1991, has not reflected in their health spending.
The Philippine Statistics Authority (PSA) said the health spending of LGUs comprised only 20 percent of overall government spending on health in 2017.
“The enactment of the UHC law is a defining moment for the Philippine health system. We, at NEDA, are optimistic that its implementation will open the doors for more reforms that will improve the health of Filipino people,” Pernia said.
The NEDA chief noted the law brings the country closer to its collective long-term vision, AmBisyon Natin 2040, where all Filipinos live long and healthy lives and where healthcare is affordable and accessible.
The UHC, signed into law in February, expands access to health services by automatically enrolling all Filipinos in PhilHealth’s National Health Insurance Program (NHIP). It seeks to ensure that all Filipino citizens have access to a comprehensive set of health services without financial hardship.
The new law is expected to significantly reduce the high out-of-pocket (OOP) expenditure for health. In 2017, about 54.5 percent of total health payment came from Filipinos’ own pocket, with medicines and drugs as the main contributors.
Lack of Philhealth coverage of medicines for outpatients and the high cost of drugs and medicines in the country push the OOP expenditure up.
“High out-of-pocket medical expenses push more people into poverty. When households spend more on hospital bills and medical treatments, they are forced to spend less on other basic necessities like food, housing, and education,” Pernia said.
The accompanying results matrix of the Philippine Development Plan (PDP) 2017-2022 targets out-of-pocket-medical expenses to go down to less than 50 percent of the total health spending by 2022.
The crafting of the implementing rules and regulations, which will operationalize provisions in the law, such as budget allocations, health financing, improvements in the benefit packages, among others, is still ongoing. (PNA)
