Voluntary health insurance as a source of funding for the health care system: the world’s experience and Ukraine
-
DOIhttp://dx.doi.org/10.21511/ins.11(1).2020.07
-
Article InfoVolume 11 2020, Issue #1, pp. 61-80
- Cited by
- 497 Views
-
105 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
In the conditions of insufficient budgetary financing of the health care system and low quality of medical care in the state medical establishments of Ukraine, the importance of extra-budgetary sources of financing becomes increasingly relevant. One such source is voluntary health insurance. The aim of the paper is to compare the state and structure of medical financing in developed countries and in Ukraine, to study the global experience in the functioning of the voluntary health insurance market, and to calculate the potential capacity of the voluntary health insurance sector in Ukraine. For mathematical calculations, 20 absolute indicators of the state of the voluntary health insurance sector, as well as macroeconomic indicators, were used. The annual values of absolute indicators for the period 2010–2019 were used in forming the array of input data. Based on the experience of foreign countries, the paper substantiates the development of the voluntary health insurance in Ukraine as an extra-budgetary source of health care funding. The capacity of the voluntary health insurance sector was defined by the authors as the maximum possible amount of insurance premiums that insurers can receive in the process of selling voluntary health insurance products. The calculations made it possible to conclude that the voluntary health insurance market in Ukraine has the potential for development, as evidenced by the predominance of the potential capacity of the voluntary health insurance segment over its real indicator.
- Keywords
-
JEL Classification (Paper profile tab)G20, G22
-
References28
-
Tables8
-
Figures15
-
- Figure 1. Stages of capacity calculation for the voluntary health insurance sector
- Figure 2. Average current health expenditures (2010–2017), % of GDP
- Figure 3. Current health expenditure (% of GDP), Ukraine, 2010–2017
- Figure 4. Average current health expenditure per capita (2010–2017), USD
- Figure 5. Current health expenditure per capita in USD, Ukraine, 2010–2017
- Figure 6. Average domestic general government health expenditure (2010–2017), % of GDP
- Figure 7. Domestic general government health expenditure (% of GDP), Ukraine, 2010–2019
- Figure 8. Structure of current health expenditure by financial resources
- Figure 9. Structure of current health expenditure by financial resources, Ukraine, 2010–2017
- Figure 10. Out-of-pocket expenditure (% of current health expenditure), Ukraine, 2010–2017
- Figure 11. Structure of gross direct health premiums written on domestic market in Europe, %, 2018
- Figure 12. The share of health insurance in gross insurance premiums, %
- Figure 13. The share of health insurance in gross insurance premiums, Ukraine, %, 2010–2019
- Figure 14. Determination of the type of growth curve for the volume of gross premiums of voluntary health insurance in Ukraine in 2010–2019
- Figure 15. Real values of gross insurance premiums for voluntary health insurance in Ukraine and the values of this segment’s capacity in the period 2010–2019
-
- Table 1. Interim calculations to determine the type of growth curve for the volume of gross premiums of the voluntary health insurance in Ukraine in 2010–2019
- Table 2. Results of calculations of the adjustment factor and capacity of the segment of voluntary health insurance in Ukraine for the period 2010–2019
- Table A1. Current health expenditure (% of GDP)
- Table A2. Current health expenditure per capita (USD)
- Table A3. General domestic government health expenditure (% of GDP)
- Table A4. The share of health insurance in gross insurance premiums, %
- Table B1. Data for the study of capacity of the voluntary health insurance sector
- Table B2. The results of normalization of the study’s information base
-
- Ali, A., & Tausif, M. R. (2018). Service quality, customers’ satisfaction, and profitability: an empirical study of Saudi Arabian insurance sector. Investment Management and Financial Innovations, 15(2), 232-247.
- Antropov, V. V. (2019). Healthcare Financing: European Experience and Russian Practice. Economics, taxes & law, 2(2), 115-126. (In Russian).
- Apteka online. (2010, November). Effektivnoye finansirovaniye zdravookhraneniya: rekomendatsii VOZ [Effective health financing: WHO recommendations]. (In Russian).
- Apteka online. (2019, December). Vytraty na okhoronu zdorovya v rozrakhunku na dushu naselennia [Health expenditure per capita]. (In Ukrainian).
- Borisova, V. (2018). Diagnosis of the socio-economic potential of health insurance. Insurance Markets and Companies, 9(1), 20-31.
- Cherkasova, S., Kalaitan, T., Rushchyshyn, N., Yaremko, I., & Yaroshevych, N. (2020). Stimulating and limiting factors for the growth of investment potential of Ukrainian insurance companies. Investment Management and Financial Innovations, 17(1), 85-96.
- Fan, V. Y., & Savedoff, W. D. (2014). The health financing transition: A conceptual framework and empirical evidence. Social Science & Medicine, 105, 112-121.
- Gataullina, E. I. (2018). Trends of Voluntary Medical Insurance in Ukraine. Naukovyi visnyk Khersonskoho derzhavnoho universytetu - Scientific Bulletin of Kherson State University, 28(2), 45-48. (In Ukrainian).
- Global Burden of Disease Health Financing Collaborator Network. (2018). Trends in future health financing and coverage: future health spending and universal health coverage in 188 countries, 2016–40. The Lancet, 391(10132), 1783-1798.
- Insurance Europe. (2020). European insurance industry database.
- Kneysler, O., Kryvytska, O., Shupa, L., & Huzela, I. (2019). Assessment of the competitive environment of the health insurance market. Problems and Perspectives in Management, 17(2), 541-549.
- Kutzin, J., Cashin, C., & Jakab, M. (Eds.) (2010). Implementing Health Financing Reform Lessons from countries in transition (425 p.). European Observatory on Health Systems and Policies.
- Legislation of Ukraine. (2017). Pro derzhavni finansovi harantii medychnoho obsluhovuvannia naselennia [About the state financial guarantees of medical services for the population]. Law of Ukraine as of October 19, 2017 No. 2168-VIII. (In Ukrainian).
- Legislation of Ukraine. (2018). Pro finansuvannia okhorony zdorovia ta zahalnooboviazkove medychne strakhuvannia v Ukraini [On health care financing and compulsory health insurance in Ukraine]. Draft Law of October 4, 2018 No. 9163. (In Ukrainian).
- Levantesi, S., Nigri, A., & Piscopo, G. (2020). Longevity risk management through Machine Learning: state of the art. Insurance Markets and Companies, 11(1), 11-20.
- Liu X., & Mills, A. (2002) Financing reforms of public health services in China: lessons for other nations. Social Science & Medicine, 54(11), 1691-1698.
- Ministerstvo okhorony zdorovia Ukrainy (MOZ). (n.d.). Natsionalna stratehiia reformuvannia systemy okhorony zdorovia v Ukraini na period 2015–2020 rokiv. Official site. (In Ukrainian).
- Ministerstvo okhorony zdorovia Ukrainy (MOZ). (n.d.). Official site. (In Ukrainian).
- National Commission for State Regulation of Financial Services. (n.d.). Informatsiia pro stan i rozvytok strakhovoho rynku. Official site. (In Ukrainian).
- Neskorodieva, I., Rodchenko, V., & Parkhomenko, O. (2018). State medical provision and health financing in Ukraine as compared to the experience of western European countries. Public and Municipal Finance, 7(4), 41-57.
- Okhrimenko, O., & Manaienko, I. (2019). Forming the life insurance companies’ reputation in Ukrainian realities. Insurance Markets and Companies, 10(1), 49-60.
- Parkheta, L. V. (2017). Insurance medicine as an alternative model of health organization in Ukraine. Stratehiia ekonomichnoho rozvytku Ukrainy - Strategy of economic development of Ukraine, 41, 186-192. (In Ukrainian).
- Prykazyuk, N. V., Berezina, S. B., & Romanchenk, M. I. (2016). Actual perspectives of implementation of obligatory medical insurance on the way of reforming the medical industry in Ukraine. Naukovyi visnyk Mizhnarodnoho humanitarnoho universytetu – Scientific Bulletin of the International Humanitarian University, 21, 138-142. (In Ukrainian).
- Rak, R., & Kovalska, K. (2008) Mistse medychnoho strakhuvannia v systemi okhorony zdorovia [The place of health insurance in the health care system]. Ekonomika – Economics, 105, 41-44. (In Ukrainian).
- Sokyrko, O. S., Kobzar, I. A., & Khanaliyeva, I. S. (2018). The Foreign Experience in Development of Medical Insurance and Possibilities It’s Application in Ukraine. Ekonomika i suspilstvo – Economy and society, 19, 1139-1144. (In Ukrainian).
- Sova, O. Yu. (2018). Current state and prospects of development of medical insurance in Ukraine. Vcheni zapysky Universytetu “KROK” – Scientific notes of the KROK University, 49, 80-92. (In Ukrainian).
- The World Bank in Ukraine. (n.d.). Official site.
- Yehorycheva, S., Fysun, I., Hudz, T., Palchuk, O., & Boiko, N. (2020). Innovations in the insurance market of a developing country: Case of Ukraine. Investment Management and Financial Innovations, 17(4), 175-188.