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Health Care Financing

Per capita, health care expenditures grew in real terms over the past 25 years. Among the major sources of financing, the contribution of out-of-pocket payments to total healthcare expenditures was the largest, while organized public and private financing sources have remained relatively small. The analysis further finds that healthcare expenditures among the poorest 40 percent of the population are the lowest. This pattern is consistent with a system that is heavily reliant on a fee-for-service system paid from out of pocket. The paper recommends that for the medium term, existing resources and subsidies be reorganized, reallocated, and targeted in a way that would allow poor families to have better access to quality care, whether publicly or privately provided.




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