Financing Of Hong Kongs Healthcare


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We are discussing about the financing problem of HK future healhcare services. Here's our ideas, thank you!

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Financing Of Hong Kongs Healthcare

  1. 1. Financing of Hong Kong’s Future Healthcare Service Presented by: Chan Tjin Jien, Cherrio (09410198) Fung Shuk Woon, Althea (09410228) Lee Sum Yu, Angel (09428518)
  2. 2. Country Comparison – Life Expectancy of Birth Rank country (years) Date of Information 1 Macau 84.36 2009 est. 2 Andorra 82.51 2009 est. 3 Japan 82.12 2009 est. 4 Singapore 81.98 2009 est. 5 San Marino 81.97 2009 est. 6 Hong Kong 81.86 2009 est. 7 Australia 81.63 2009 est. 8 Canada 81.23 2009 est. 9 France 80.98 2009 est. 10 Sweden 80.86 2009 est.
  3. 3. Country Comparison – Infant mortality rate Rank country (deaths/1,000 live births) Date of Information 215 Anguilla 3.52 2009 est. 216 Finland 3.47 2009 est. 217 France 3.33 2009 est. 218 Iceland 3.23 2009 est. 219 Macau 3.22 2009 est. 220 Hong Kong 2.92 2009 est. 221 Japan 2.79 2009 est. 222 Sweden 2.75 2009 est. 223 Bermuda 2.46 2009 est. 224 Singapore 2.31 2009 est.
  4. 4. Our current medical system <ul><li>Good health of HongKongers </li></ul><ul><li>Our existing health care model has a lot of difficulties to encounter </li></ul><ul><ul><li>over utilization of the public healthcare services </li></ul></ul><ul><ul><li>unbalance between the public & private sectors </li></ul></ul><ul><li>Very critical issue among those issues is the funding problem of the healthcare services </li></ul>
  5. 6. Aging Population
  6. 7. Aging Population
  7. 8. Advanced Technology
  8. 9. Why healthcare expenditure keep increasing in the coming future? <ul><li>Aging problem </li></ul><ul><ul><li>It is predicted that in the year 2036 </li></ul></ul><ul><ul><li>more than 25% of our population is the people whose age over 65 </li></ul></ul><ul><li>Medical Inflation </li></ul><ul><ul><li>advanced new medical treatments are invented </li></ul></ul><ul><ul><li>new drugs having better & effective treatment </li></ul></ul>
  9. 10. Our problems <ul><li>Healthcare expenditure </li></ul><ul><li>keeping increase </li></ul><ul><li>If the government lacks of other supplementary healthcare financing sourcing to support the changing healthcare services demand of the whole community </li></ul><ul><li>We can see that the quality of our medical services would be deteriorated </li></ul>
  10. 11. Goals
  11. 12. Goals <ul><li>To promote individual responsibility </li></ul><ul><ul><li>Everyone should share part of their medical expenses </li></ul></ul><ul><li>To provide more choices </li></ul><ul><ul><li>E njoy more choices on services provider and different level of treatment </li></ul></ul>
  12. 13. Goals <ul><li>To provide better healthcare services </li></ul><ul><li>Relief the finance pressure on public healthcare system </li></ul><ul><li>To re-deploy the spending of healthcare services </li></ul><ul><li>To focus on the elderly, needy group and advance in medical technology </li></ul>
  13. 14. Proposed new healthcare model <ul><li>Supplementary Financing </li></ul><ul><ul><li>Medical Savings Account </li></ul></ul><ul><ul><li>Healthcare Insurance </li></ul></ul><ul><li>Main Financing </li></ul><ul><ul><li>Tax-funded finance sourcing </li></ul></ul>
  14. 15. Medical Savings Account (MSA) <ul><li>Definition </li></ul><ul><li>Strengths of MSA </li></ul><ul><li>Weaknesses of MSA </li></ul><ul><li>Suggestions </li></ul>
  15. 16. What is MSA?
  16. 17. Medical Savings Account (MSA) <ul><li>People save a proportion of their income into their personalized accounts so that they will have a certain amount of savings for their future medical expenses </li></ul>
  17. 18. The Strengths of MSA <ul><li>Fair & easily acceptance </li></ul><ul><li>Reduce burden </li></ul><ul><li>Change attitude </li></ul>
  18. 19. The weaknesses of MSA <ul><li>Insufficiency for serious and chronic disease </li></ul><ul><li>Cause administration cost </li></ul><ul><li>Other problems </li></ul>
  19. 20. Suggestions <ul><li>Healthcare Insurance </li></ul><ul><li>MPFSA </li></ul><ul><li>Mandatory savings account </li></ul><ul><li>Spend individuals’ saving first </li></ul><ul><li>Decrease price range between private and public </li></ul>
  20. 21. Healthcare Insurance (HCI)
  21. 22. Healthcare Insurance (HCI) <ul><li>Definition </li></ul><ul><li>Strengths of HCI </li></ul><ul><li>Weaknesses of HCI </li></ul><ul><li>Suggestions </li></ul>
  22. 23. What is HCI ? <ul><li>Government regulated healthcare insurance </li></ul><ul><li>A basic insured plan for the working population (aged from 18-64) to cover the charges for private hospital services and the expenses on the treatment of the serious illness </li></ul>
  23. 24. The strengths of HCI <ul><li>Fairness and equity </li></ul><ul><li>To provide more choices </li></ul><ul><li>Stable financing source </li></ul><ul><li>Relief the financial burden on Government and future generation </li></ul>
  24. 25. The weaknesses of HCI <ul><li>Administration cost incur </li></ul><ul><li>Coverage on working population only </li></ul>
  25. 26. Suggestions <ul><li>Ways to reduce administration cost </li></ul><ul><li>Ways to solve the coverage problem for non-working group </li></ul>
  26. 27. Government Funding
  27. 28. Comparison on health expenditure between Hong Kong and selected economies
  28. 29. Government Funding <ul><ul><li>Government spent around 2.6% of GDP on health expenditure in the year of 2006 </li></ul></ul><ul><ul><ul><li>United Kingdom - 7.3% of GDP on health care </li></ul></ul></ul><ul><ul><ul><li>Canada - 7% of GDP on health care </li></ul></ul></ul><ul><ul><li>Main healthcare service financing in HK </li></ul></ul><ul><ul><li>Government income is mainly collected by the profit tax and salaries tax </li></ul></ul><ul><ul><li>We stressed that HKSAR government should not reduce her financing share in health care system! </li></ul></ul>
  29. 30. Safety Net
  30. 31. Strengths of tax-funded system <ul><li>Safety net </li></ul><ul><ul><li>“ No one should be denied adequate medical care through lack of means” </li></ul></ul><ul><ul><li>The under-privileged with lower income would be provided by the basic healthcare service </li></ul></ul><ul><li>Fair and equal </li></ul><ul><ul><li>Disregard his or her wealth, everyone is paying the same amount of medical fee for the service with the same quality </li></ul></ul>
  31. 32. Wealth Distribution
  32. 33. Strengths of tax-funded system <ul><li>Wealth distribution </li></ul><ul><ul><li>Tax-funded healthcare system have shifted the income from high-income class to the low-income class </li></ul></ul><ul><li>Low administration cost </li></ul><ul><ul><li>The resources are more well allocated by the government to the medical services rather than to the hands of the private insurance companies </li></ul></ul><ul><li>Risk sharing </li></ul><ul><ul><li>Healthy people pay taxes to subsidize those unhealthy people to use the public health care service </li></ul></ul>
  33. 34. Inefficiency
  34. 35. Weakness of tax-funded system <ul><li>Inefficiency and mistreatment </li></ul><ul><ul><li>Little market competition between different healthcare providers within the private and public sectors </li></ul></ul><ul><ul><li>Great demand for the public healthcare service </li></ul></ul><ul><ul><li>Inefficient public medical services </li></ul></ul><ul><ul><ul><li>mistreatment of the doctors in the different hospitals </li></ul></ul></ul><ul><ul><ul><li>lower quality of services </li></ul></ul></ul>
  35. 36. Shortcomings of tax-funded system <ul><li>Over utilization of public services </li></ul><ul><ul><li>Cost for the services is much lower than the private sector </li></ul></ul><ul><ul><li>all the people, no matter they are affordable </li></ul></ul><ul><ul><li>rely on the public service and results in further deterioration of the service </li></ul></ul>
  36. 38. Some other suggestions <ul><li>Tax reform </li></ul><ul><ul><li>Broadening our tax-base => greater risk-pooling function </li></ul></ul><ul><ul><li>Increase tax rate of certain taxes (e.g. tobacco tax) </li></ul></ul><ul><li>Health care services reform (Cost-effective) </li></ul><ul><ul><li>Reform HA’s structure & operation </li></ul></ul><ul><ul><ul><li>develop healthcare delivery system </li></ul></ul></ul><ul><ul><li>Promote collaboration of public & private sectors </li></ul></ul><ul><ul><li>Strengthen the primary care services (outpatient services & other preventive healthcare services ) </li></ul></ul>
  37. 40. Conclusions <ul><li>A very big question to discuss the long-term solution of our existing healthcare system problem </li></ul><ul><li>If the above reform will be taken: </li></ul><ul><ul><li>reducing the pressure of present public services </li></ul></ul><ul><ul><li>some affordable patients would tend to shift from using the public healthcare services to the private healthcare services </li></ul></ul><ul><ul><li>the patients would have more choices of different treatments </li></ul></ul><ul><ul><li>quality of the public healthcare services </li></ul></ul>