Fairness in finance is an intrinsic and challenging goal of health systems. Mexico recently devised a structural reform that responds to this challenge. Through a new system of social protection in health that will offer public insurance to all citizens, the reform is expected to reduce catastrophic and out-of-pocket spending while promoting efficiency, more equitable resource distribution, and better-quality care. This paper analyzes the reform, focusing on financial features, expected benefits, and future challenges. It also highlights aspects of relevance for other countries that are striving to formulate and implement health policies to promote universal social protection and fair financing.
A 2003 reform is making good progress toward covering Mexico’s eleven million uninsured families by 2010.
Achieving fair financing continues to challenge health systems in countries at all levels of economic development. Complex, differentiated health care institutions were developed in the twentieth century alongside technological breakthroughs, yet effective, fair, and sustainable methods to finance these systems are still lacking even in economically developed countries.1
In most developing countries, financial protection for health is segmented and fragmented. Mexico, a middle-income country characterized by social inequalities and a complex epidemiological transition, fits this description. There are large differences among Mexico’s thirty-two states (including the Federal District of Mexico City), in terms of both health needs and the contribution to health care, particularly for the uninsured. The health system must battle the diseases of underdevelopment, concentrated in the poorest states, and simultaneously meet the challenges and the upward pressure on health spending associated with chronic disease and aging in all parts of the country.
The World Health Organization (WHO) 2000 health system performance assessment ranked Mexico overall at 51 out of 191 countries but at 144 on financial fairness.2 The poor performance on fairness of finance reflects the fact that more than half of Mexican households lack health insurance and therefore financial protection. To respond to this situation, Mexico recently devised a structural reform that seeks to extend protection to families not covered by conventional employment-based social insurance. This is expected to reduce economic barriers to timely care and catastrophic household spending.
The Mexican reform of 2003 faces challenges that are rooted in the original design of the modern Mexican health system.3 The Ministry of Health was established in 1943. The Mexican Social Security Institute (Instituto Mexicano del Seguro Social, or IMSS) was created in the same year to attend to private-sector, formal, salaried workers and their families. In 1959 the Institute of Social Services and Security for Civil Servants (Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado, or ISSSTE) began to cover government employees and their families. The system was thus segmented—from its inception and through to the reform of 2003—between insured, formal, salaried employees and their families with the right to social security, and the rest of the population (the self-employed, the unemployed, nonsalaried and informal-sector workers, and those who do not work). All citizens other than salaried workers were excluded from formal social insurance schemes, and the health care needs of this “residual” group were attended to by the Ministry of Health. The benefit package was undefined and funded from a combination of federal funds and, to a lesser degree, state-level contributions and fees paid by families at the point of service.
When the reform was passed in 2003, approximately 40 percent of the population was covered by the IMSS, 7 percent by ISSSTE, and no more than 2–3 percent by private health insurance. As a result, insurance coverage was regressive both among households and across states, there was an overreliance on out-of-pocket spending to finance the health system, and impoverishing health spending was common, particularly among families in the lowest income deciles.4 The reform addresses these issues by offering subsidized, publicly provided health insurance to the fifty million Mexicans who are not covered by social security and are concentrated among the poor.
The reform was passed into law in April 2003, and the new insurance scheme, called the System for Social Protection in Health (SSPH), went into operation 1 January 2004 with the goal of achieving universal coverage by 2010. The Popular Health Insurance (PHI) is the operational program of the new system. The affiliation process runs from 2004 to 2010, so that 14.3 percent of the approximately eleven million families that make up the uninsured population will be included each year. Preference must be given to families from the lowest income deciles.
Before the 2003 reform, the financial structure of the Mexican health system was marked by serious imbalances. In 2003 Mexico spent only 6.1 percent of gross domestic product (GDP) (approximately US$360 per capita) on health care. This proportion was below the Latin American average and was too low to address the challenges of the epidemiological transition (shift in the burden of disease to chronic, long-term illness and injury). Second, out-of-pocket spending accounted for more than half of total health spending and was above that of many Latin American countries including Brazil, Chile, Colombia, and Costa Rica. The distribution of public funds among population groups and states was also inefficient and inequitable. Although the uninsured accounted for almost half of the population, they received only a third of the federal funding for health. Further, there was a five-to-one difference in spending per capita across states in 2003, and the difference in state contributions was even more dramatic.5
Regressive insurance coverage worsened the situation. Although more than 60 percent of the richest quintile of the population was insured, the figure was approximately 10 percent for the poorest quintile. Further, in the poorest states, only one-fifth of households were insured. Each year between two and four million households either spent 30 percent or more of disposable income (total income less spending on food) on health or crossed the poverty line because of their health spending. Further, 85 percent of these households were uninsured, and a majority were from the poorest income deciles.6
As a source of financing for a health system, out-of-pocket payments tend to be inequitable, unjust, and inefficient.7 In Mexico the predominance of this form of payment is both a cause and a result of the imbalances discussed above. Reducing it is thus a target of the reform.
This paper describes the key innovations and expected benefits of the Mexican reform. It focuses on analyzing design issues and the challenges and results of the initial stages of implementation, paying particular attention to financing.
สำคัญทางการเงินเป็นเป้าหมายท้าทาย และ intrinsic ของระบบสุขภาพ นอกจากนี้เม็กซิโกล่าสุดคิดค้นปฏิรูปโครงสร้างที่ตอบสนองต่อความท้าทายนี้ ผ่านระบบใหม่ป้องกันสังคมสุขภาพที่จะนำเสนอประกันภัยสาธารณะเพื่อประชาชนทั้งหมด การปฏิรูปคาดว่าจะลดความรุนแรง และ out-of-pocket ใช้ขณะส่งเสริมประสิทธิภาพ การกระจายทรัพยากรความเท่าเทียมกันมากขึ้น และดูแลคุณภาพดีกว่า กระดาษนี้วิเคราะห์ปฏิรูป เน้นคุณลักษณะทางการเงิน ผลประโยชน์ที่คาดหวัง และความท้าทายในอนาคต นอกจากนี้มันยังเน้นด้านความเกี่ยวข้องสำหรับประเทศอื่น ๆ ที่มีความมุ่งมั่นในการกำหนด และดำเนินนโยบายสุขภาพเพื่อส่งเสริมป้องกันสังคมสากลและเงินดีปฏิรูป 2003 จะทำให้ดีก้าวหน้าครอบคลุมครอบครัวไม่มีประกันของร้านล้านของเม็กซิโก 2010บรรลุธรรมเงินยังคงท้าทายระบบสุขภาพในประเทศพัฒนาเศรษฐกิจทุกระดับ สถาบันดูแลสุขภาพที่ซับซ้อน สังเกตถูกพัฒนาขึ้นในศตวรรษที่ยี่สิบควบคู่ไปกับเทคโนโลยีนวัตกรรมใหม่ ยังมีประสิทธิภาพ ยุติธรรม และวิธีทางระบบเหล่านี้ยังไม่มีแม้แต่ในทางเศรษฐกิจอย่างยั่งยืนพัฒนา countries.1ในประเทศกำลังพัฒนาส่วนใหญ่ ป้องกันสุขภาพทางการเงินจะถูกแบ่งเป็นช่วง และกระจัดกระจาย ประเทศเม็กซิโก ประเทศคอร์รัปชั่นโดยความเหลื่อมล้ำทางสังคมและการเปลี่ยนความซับซ้อน พอดีคำอธิบายนี้ มีความแตกต่างใหญ่รัฐของเม็กซิโกสามสิบสอง (รวมทั้งเขตพื้นที่กลางเมืองเม็กซิโก), ความต้องการสุขภาพและสัดส่วนการดูแลสุขภาพ โดยเฉพาะอย่างยิ่งสำหรับการไม่มีประกัน ระบบสุขภาพต้องต่อสู้โรค underdevelopment เข้มข้นในอเมริกาจนที่สุด และตอบสนองความท้าทายและความดันสุขภาพค่าใช้จ่ายที่เกี่ยวข้องกับโรคเรื้อรัง และอายุในทุกส่วนของประเทศขึ้นพร้อมกันประเมินประสิทธิภาพของระบบสุขภาพโลกสุขภาพองค์กรผู้ 2000 เม็กซิโกโดยรวมการจัดอันดับที่ 51 จากทั้งหมด 191 ประเทศ แต่ที่ 144 บน fairness.2 การเงินประสิทธิภาพต่ำการยุติธรรมของทางการเงินสะท้อนข้อเท็จจริงที่ว่า กว่าครึ่งหนึ่งของเม็กซิกันครัวเรือนขาดประกันสุขภาพและการป้องกันดังนั้นการเงิน เพื่อตอบสนองต่อสถานการณ์นี้ เม็กซิโกคิดค้นปฏิรูปโครงสร้างที่ขยายคุ้มครองครอบครัวไม่ครอบคลุม โดยทั่วไปตามงานประกันสังคม ล่าสุด นี้คาดว่าจะลดอุปสรรคทางเศรษฐกิจดูแลทันเวลาและใช้จ่ายครัวเรือนที่รุนแรงThe Mexican reform of 2003 faces challenges that are rooted in the original design of the modern Mexican health system.3 The Ministry of Health was established in 1943. The Mexican Social Security Institute (Instituto Mexicano del Seguro Social, or IMSS) was created in the same year to attend to private-sector, formal, salaried workers and their families. In 1959 the Institute of Social Services and Security for Civil Servants (Instituto de Seguridad y Servicios Sociales de los Trabajadores del Estado, or ISSSTE) began to cover government employees and their families. The system was thus segmented—from its inception and through to the reform of 2003—between insured, formal, salaried employees and their families with the right to social security, and the rest of the population (the self-employed, the unemployed, nonsalaried and informal-sector workers, and those who do not work). All citizens other than salaried workers were excluded from formal social insurance schemes, and the health care needs of this “residual” group were attended to by the Ministry of Health. The benefit package was undefined and funded from a combination of federal funds and, to a lesser degree, state-level contributions and fees paid by families at the point of service.When the reform was passed in 2003, approximately 40 percent of the population was covered by the IMSS, 7 percent by ISSSTE, and no more than 2–3 percent by private health insurance. As a result, insurance coverage was regressive both among households and across states, there was an overreliance on out-of-pocket spending to finance the health system, and impoverishing health spending was common, particularly among families in the lowest income deciles.4 The reform addresses these issues by offering subsidized, publicly provided health insurance to the fifty million Mexicans who are not covered by social security and are concentrated among the poor.The reform was passed into law in April 2003, and the new insurance scheme, called the System for Social Protection in Health (SSPH), went into operation 1 January 2004 with the goal of achieving universal coverage by 2010. The Popular Health Insurance (PHI) is the operational program of the new system. The affiliation process runs from 2004 to 2010, so that 14.3 percent of the approximately eleven million families that make up the uninsured population will be included each year. Preference must be given to families from the lowest income deciles.Before the 2003 reform, the financial structure of the Mexican health system was marked by serious imbalances. In 2003 Mexico spent only 6.1 percent of gross domestic product (GDP) (approximately US$360 per capita) on health care. This proportion was below the Latin American average and was too low to address the challenges of the epidemiological transition (shift in the burden of disease to chronic, long-term illness and injury). Second, out-of-pocket spending accounted for more than half of total health spending and was above that of many Latin American countries including Brazil, Chile, Colombia, and Costa Rica. The distribution of public funds among population groups and states was also inefficient and inequitable. Although the uninsured accounted for almost half of the population, they received only a third of the federal funding for health. Further, there was a five-to-one difference in spending per capita across states in 2003, and the difference in state contributions was even more dramatic.5Regressive insurance coverage worsened the situation. Although more than 60 percent of the richest quintile of the population was insured, the figure was approximately 10 percent for the poorest quintile. Further, in the poorest states, only one-fifth of households were insured. Each year between two and four million households either spent 30 percent or more of disposable income (total income less spending on food) on health or crossed the poverty line because of their health spending. Further, 85 percent of these households were uninsured, and a majority were from the poorest income deciles.6As a source of financing for a health system, out-of-pocket payments tend to be inequitable, unjust, and inefficient.7 In Mexico the predominance of this form of payment is both a cause and a result of the imbalances discussed above. Reducing it is thus a target of the reform.This paper describes the key innovations and expected benefits of the Mexican reform. It focuses on analyzing design issues and the challenges and results of the initial stages of implementation, paying particular attention to financing.
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