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