Over the past two decades Vietnam has made enormous progress to expand health insurance coverage to its population. Further progress will require significant additional public financing, as well as efforts improve efficiency and strengthen insurance organization and management. It contains recommendations and next steps for Vietnam to follow.
Over the past two decades Vietnam has made enormous progress towards achieving universal coverage (UC) for its population. Significant challenges remain, however, in terms of improving equity with continuing low rates of enrollment. Ensuring financial protection also remains an elusive goal. The Master Plan for Universal Coverage approved in 2012 by the Prime Minister directly addresses both these deficiencies in coverage. The objective of this report is to assess the implementation of Vietnam SHI and provide options for moving towards UC. This is a joint assessment with development partners, World Health Organization, United Nations Children's Fund (Unicef) and Rockefeller Foundation. Expanding breadth of coverage, particularly for those hard to reach groups such as the near-poor and informal sector would require substantially increasing general revenue subsidies and fully subsidizing the premiums for the near-poor. High enrollment rates would, however, have little impact on financial protection and equity if OOP costs remain high. Achieving UC will require sustained efforts to improve efficiency in the system, and gain better value for money from available budgetary resources; without these efforts, any further progress towards UC would be financially unsustainable. There is considerable scope for improving efficiency in Vietnam. Fragmentation in the pooling of funds gives rise to unnecessary costs. Inefficiencies in resource allocation and purchasing arrangements include: (i) an overly generous benefits package; (ii) provider payment mechanisms and the mix of incentives facing providers which result in an oversupply of services; (iii) high prices, overconsumption and inappropriate use of pharmaceuticals; and (iv) the structure and incentives embedded within the delivery system. The organization, management and governance of SHI are fragmented and often dysfunctional. The present institutional setting for SHI needs to be assessed and changed.
Over the past two decades Vietnam has made enormous progress towards achieving universal coverage (UC) for its population. Significant challenges remain, however, in terms of improving equity with continuing low rates of enrollment. Ensuring financial protection also remains an elusive goal. The Master Plan for Universal Coverage approved in 2012 by the Prime Minister directly addresses both these deficiencies in coverage. The objective of this report is to assess the implementation of Vietnam SHI and provide options for moving towards UC. This is a joint assessment with development partners, World Health Organization, United Nations Children's Fund (Unicef) and Rockefeller Foundation. Expanding breadth of coverage, particularly for those hard to reach groups such as the near-poor and informal sector would require substantially increasing general revenue subsidies and fully subsidizing the premiums for the near-poor. High enrollment rates would, however, have little impact on financial protection and equity if OOP costs remain high. Achieving UC will require sustained efforts to improve efficiency in the system, and gain better value for money from available budgetary resources; without these efforts, any further progress towards UC would be financially unsustainable. There is considerable scope for improving efficiency in Vietnam. Fragmentation in the pooling of funds gives rise to unnecessary costs. Inefficiencies in resource allocation and purchasing arrangements include: (i) an overly generous benefits package; (ii) provider payment mechanisms and the mix of incentives facing providers which result in an oversupply of services; (iii) high prices, overconsumption and inappropriate use of pharmaceuticals; and (iv) the structure and incentives embedded within the delivery system. The organization, management and governance of SHI are fragmented and often dysfunctional. The present institutional setting for SHI needs to be assessed and changed.
This study examines how the demand and supply of healthcare services have responded to the expansion of health insurance coverage in Vietnam by using biyearly provincial panel data from 2006 to 2014. The results of our analysis indicate significant progress towards universal health coverage (UHC) in Vietnam, with the expansion of health insurance coverage being accompanied by increases in admissions and inpatient days. However, some concerns remain. Our findings show a positive response of supply capacity only in terms of doctors and nurses at higher-level hospitals (provincial hospitals), and none in other relevant aspects. Moreover, we find no positive response of the number of outpatient visits. Another concern is the issue of financial protection. The decline in out-of-pocket payments is not significant throughout our observation period, suggesting that lowering the cost of healthcare is not straightforward and that the expansion of health insurance coverage alone cannot achieve this. We believe that the Vietnamese experience has valuable implications for other emerging and developing countries, considering that the expansion of health insurance coverage is likely to increase utilization of healthcare services significantly and that the supply side needs to be prepared for the increase.
Specialist groups have often advised health ministers and other decision makers in developing countries on the use of social health insurance (SHI) as a way of mobilizing revenue for health, reforming health sector performance, and providing universal coverage. This book reviews the specific design and implementation challenges facing SHI in low- and middle-income countries and presents case studies on Ghana, Kenya, Philippines, Colombia, and Thailand.
Vietnam's successes in the health sector are legendary. Its rates of infant and under-five mortality are comparable to those of countries with substantially higher per capita incomes. However, challenges remain in how to further expand coverage, increase quality of care, and contain the rapidly increasing health care costs.
The book synthesizes the experiences from Bangladesh, Brazil, France, Ethiopia, Ghana, Indonesia, Japan, Peru, Thailand, Turkey and Vietnam in implementing policies to achieve and sustain Universal Health Coverage. The study focuses on three aspects of UHC reforms: political economy, health financing, and human resources for health.
One of the important political goal in the coming years in Vietnam is the achievement of universal coverage of health insurance. For that purpose the government is pursuing the strategy to provide free health insurance cards to all the poor, the ethnic minority populations and the persons living in remote or mountainous areas. These transfers aim at equalizing opportunity of access and receipts of health care services. Aggregate indicators on health insurance expenditures suggest that the system is still far from achieving these two goals, however. The use of health care units and the amount spent by the subsidized populations is much lower than by the rest of the population. Health insurance is expected to narrow the difference in health expenditures due to prices. Differences in access and treatment depend also on preference, education and other barriers. It is often cited that cultural background or underestimations about the seriousness of illness explain the lower use of health care facilities by people of ethnic minorities. This study investigated these issues through the analysis of individual's health insurance data of the Provincial Social Security (PSS) Heath Insurance of KonTum in 2008. The main findings are that members of ethnic minorities and workers of the informal sector (not in social insurance) receive less expensive treatments and undergo less number of surgery acts than non- poor patients with the same disease, the same age and same gender. Ethnic appartenance or distance from the commune of residence and hospitals do not explain the differences in treatment, the number of visits, and the referral between the different groups of the poor and between the poor and the non poor. The result suggest that financial barriers (patient's ability to pay out-of-pocket amounts) more than cultural barriers or distance explain the existing gap in health services use between the poor and the non-poor in Vietnam.
Within the last twenty years a large-scale bottom-up privatization has taken place in Vietnam, changing and dismantling the public health care system. This process has led to severe tensions inherent in the transitional society of Vietnam between equity and access to health care support - especially for the poor, elderly, migrants, and ethnic minorities - on the one hand, and its efficiency on the other hand. The book traces the reform efforts to modernize the health care system by the Communist Party of Vietnam and the Vietnamese government. The author bases her findings on little known primary literature and interviews with key stakeholders of the policy network involved in the reform of the health care system, thereby painting an authentic atmospheric picture of the profound changes in the health care system in Vietnam.
