Press Releases

Release of research results aims to generate more discussions on health care financing

        The Government hopes to generate more discussions in the community on the health care financing issue by releasing the initial research findings on a medical savings scheme, a spokesman for the Health, Welfare and Food Bureau said today (June 20).

        The research examined various health care financing sources and assessed the economic feasibility of implementing a medical savings scheme in Hong Kong. The latter is a concept first raised in the Health Care Reform Consultation Document published in December, 2000.

        The research analysed Hong Kong public's savings behaviour and health care utilisation pattern, conducted a focus group to collect views on a medical savings scheme, assessed the effectiveness of the medical savings scheme through sophisticated actuarial illustration, and made use of economic analysis tools to determine the potential economic impact of the scheme.

        The initial findings showed there was no single best combination of funding sources which could meet the needs of every economy, and each economy had to take into account its own situation (e.g. level of subsidy to health care services, rate of taxation, economic development and demographic trends and etc) in coming up with the appropriate action.

        However, the research revealed that heavy reliance on general taxation to finance the health care system could render it vulnerable in times of economic and fiscal difficulties. At present, general taxation accounts for more than 53% of the total funding sources available to the health care system in Hong Kong.

        In response to media enquiries, the spokesman said, "the Government has always committed to our policy of supporting a health care system for the general public with funds mainly from our taxation."

       "Nevertheless, it is clear that taxation alone should not be relied on to fully support a health care system of our standard, which is comparable to many developed countries. To have a sustainable system, other sources of funding such as a medical savings scheme should be explored as supplementary components to the whole system.

        "Further to our initial research, we need to examine carefully the role that a medical savings scheme may play in our future health care system. We also need to study the detailed features of such a scheme and its implications on our economy before determining whether this is the direction that we should pursue.

        "Given the subject's complexity and its far-reaching implications, we need further studies before developing new financing options that will be sustainable in the long term, and equitable and accessible to all members of the community," the spokesman said.

        The spokesman said by exploring the feasibility of alternative financing sources, the Government had no intention to shift its responsibility to the community.

        "Indeed, we hope to strengthen the long term financial sustainability of our health care system, and we are also taking measures to improve our system's equity, cost-effectiveness and efficiency," he said.

        The spokesman stressed it had long been the Government's cardinal principle that no one would be denied adequate medical care due to lack of means.

        "The Government will continue to invest heavily into the public health care system, and a medical fee waiver mechanism will continue to be in place to provide effective protection to those who cannot afford their medical expenditure.

        "We will consult the Legislative Council, major stakeholders and the general public further on this whole issue of health care financing," he said.

Ends/Sunday, June 20, 2004

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