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

3. Financing
3.1 Health expenditure
In 2009 Hungary spent 7.4% of its GDP on health, or a total of HUF 1940
billion (€7.0 billion). Based on OECD data, public expenditure on health
accounted for 69.7% of total health spending that year. In 2009, per capita
spending on health amounted to US$ 1510.7 at purchasing power parity (PPP)
(Table 3.1).
Between 1995 and 2000, private expenditure on health as a share of total
health spending almost doubled and has remained close to 30% ever since. As a
share of GDP, public expenditure on health dropped from 6.1% to 5.2% between
1995 and 2009, whereas the share of OOP payments increased from 1.2% of GDP
to 1.8% of GDP. Although the predominance of public over private expenditure
has not changed since the new system of health care financing started to operate
in 1990, the share of OOP payments 1 in total health expenditure rose from
16.0% in 1995 to 26.3% in 2000 and has remained stable around 23.7% since
2005. Spending through voluntary health insurance, however, accounted for
only 7.4% of private expenditure on health and 2.7% of total expenditure on
health in 2009, up from 0.6% and 0.2% in 2000, respectively (Table 3.1).
Between 1988 and 1994, the health sector was accorded relative priority,
which meant that health spending was allowed to rise – at least as a share of
GDP – despite negative economic growth. Although the overall economy began
to expand in 1994, the pace of growth slowed in 1995 and 1996. In anticipation
of an economic crisis, the government implemented strict stabilization policies
in 1995 and 1996, targeting public expenditure on health, among other areas.
Although the economic growth that resumed in 1997 proved to be both
substantial and stable, public expenditure on health decreased as a share of
GDP, falling to 4.9% in 2001, its lowest level since 1995 (WHO Regional
1 Including co-payments and co-insurance for pharmaceuticals.
3. Financing