05.05.2013 Views

Health Systems in Transition - Hungary - World Health Organization ...

Health Systems in Transition - Hungary - World Health Organization ...

Health Systems in Transition - Hungary - World Health Organization ...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

<strong>Health</strong> systems <strong>in</strong> transition <strong>Hungary</strong> 189<br />

the proportional component is levied on <strong>in</strong>come types that are typically derived<br />

by <strong>in</strong>dividuals with higher <strong>in</strong>comes, such as dividends and <strong>in</strong>-k<strong>in</strong>d allowances.<br />

Accord<strong>in</strong>gly, the new hybrid tax/contribution (2005/6), called the “simplified<br />

contribution payment”, alone can be described as progressive, as it can only be<br />

used by artists and media workers who are usually on the wealthier side of the<br />

population. However, they end up pay<strong>in</strong>g much less <strong>in</strong> total than others if all<br />

taxes and contributions are taken <strong>in</strong>to account, suggest<strong>in</strong>g rather regressivity<br />

(revenue from this source represents only a negligible share of total HIF revenue<br />

anyway – see section 3.3.2 and subsection Revenue collection <strong>in</strong> section 6.1.2).<br />

Unlike these earmarked sources of revenue, central government transfers to<br />

the HIF can be classified as progressive, as they are f<strong>in</strong>anced through general<br />

taxation. S<strong>in</strong>ce 2006 there has been a strong shift towards fund<strong>in</strong>g the health<br />

system through general taxation, a phenomenon very much <strong>in</strong> l<strong>in</strong>e with recent<br />

trends <strong>in</strong> Europe, which move away from exclusive reliance on labour-related<br />

social <strong>in</strong>surance contributions and use a mix of revenue sources for f<strong>in</strong>anc<strong>in</strong>g<br />

the health <strong>in</strong>surance system (see section 3.2).<br />

At the same time, a large share of health system f<strong>in</strong>anc<strong>in</strong>g <strong>in</strong> <strong>Hungary</strong> is<br />

private, consist<strong>in</strong>g ma<strong>in</strong>ly of OOP payments, which by def<strong>in</strong>ition are strongly<br />

regressive. Table 7.1 gives an overview of the progressivity of the ma<strong>in</strong> sources<br />

of health care f<strong>in</strong>anc<strong>in</strong>g <strong>in</strong> <strong>Hungary</strong>.<br />

Table 7.1<br />

Ma<strong>in</strong> sources of health care f<strong>in</strong>anc<strong>in</strong>g <strong>in</strong> <strong>Hungary</strong> and their progressivity rated from<br />

1 (strongly regressive) to 9 (strongly progressive)<br />

Regressive Proportional Progressive<br />

1 2 3 4 5 6 7 8 9<br />

HIF contribution<br />

Hypothecated health care tax<br />

x<br />

flat (lump sum) x<br />

proportional x<br />

Simplified contribution payment (for <strong>in</strong>dividuals/<br />

small entrepreneurs <strong>in</strong> the arts)<br />

x<br />

General taxes (central government transfers) x<br />

Local taxes x<br />

Private health <strong>in</strong>surance x<br />

Voluntary mutual health funds x<br />

Informal payments x<br />

Formal OOP payments x

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!