A special newsletter takeover by Simiao Chen
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Wednesday, August 24, 2022 | The Latest Research, Commentary, And News
From Health Affairs
Dear John,
Today's newsletter is written by Simiao Chen of Heidelberg University.
Chen is the lead author of the article "Health Insurance Coverage In
Low- And Middle-Income Countries Remains Far From The Goal Of Universal
Coverage
."
Benefits Of Expanding Health Insurance Coverage
Health insurance is an important tool for achieving universal health
coverage (UHC), defined as
a state in which "all people have access to the health services they
need, when and where they need them, without financial hardship."
Unfortunately, current health insurance coverage is insufficient.
A recent study
found only one in five people across fifty-six low- and middle-income
countries (LMICs) had health insurance. Moreover, only seven of the
studied countries had health insurance coverage above 50 percent, and
only three countries had coverage above 70 percent.
Inadequate coverage is associated with low access to care, heightened
risk of poor health outcomes
including premature mortality,
and potential for
catastrophic health expenditures
.
Improved health insurance coverage in LMICs is therefore urgently
needed.
Expanding health insurance coverage promises a broad array of health,
economic, and social benefits.
In addition to reducing mortality and morbidity
,
improved health insurance coverage may increase productivity, labor
force participation, and the labor supply, and thus achieve economic
growth
.
An increase in health insurance coverage will also promote scientific
and technological innovation in the health care sector, thus increasing
total factor productivity and promoting economic growth further
.
Finally, increased health insurance coverage will help achieve better
health and social equity
.
Expanding health insurance coverage will require increased investment in
the health care sector, which is currently severely underfunded both in
LMICs and globally.
A multicountry study
found that in
all but one of the studied countries, the share of gross domestic
product (GDP) spent on health was far from the socially optimal share
(i.e., the share that maximizes the welfare of the population), which
was found to be 14-16 percent of GDP.
For example, in 2019, China spent only 5.4 percent
of its GDP on
health, Russia spent 5.7 percent, and India spent 3.0 percent.
Among the fifteen countries studied, only the United States reached the
optimal share for health expenditure.
Expanding health insurance coverage is an imperative for populations
around the globe.
Achieving superior coverage will require a shift in mindset to recognize
that spending on health is not a waste of resources, but rather an
investment that offers broad social and economic benefits.
Countries at all income levels should invest more in the health care
sector and ideally increase the share of GDP dedicated to health
expenditure to a socially optimal level.
Spending more on health and expanding insurance coverage will enable
countries to achieve UHC, promote socioeconomic development, and
maximize the welfare of their populations.
Did you enjoy today's newsletter? You can read more essays like this by
becoming a Health Affairs Insider, where you can sign up for curated
 newsletters on health spending, health reform, social determinants of
health, and health equity.
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seek to improve Medicare and Medicaid integration for dual-eligible
individuals.
This article is part of a Health Affairs Forefront major series on
Medicare and Medicaid Integration
.
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Daily Digest
Health Insurance Coverage In Low- And Middle-Income Countries Remains
Far From The Goal Of Universal Coverage
Simiao Chen et al.
Noncommunicable Diseases Attributable To Tobacco Use In China:
Macroeconomic Burden And Tobacco Control Policies
Simiao Chen et al.
Congress Considers Strategies To Improve Medicare And Medicaid
Integration For Dual-Eligible Individuals
Laura M. Keohane and Ann Hwang
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