2nd October 2015

Economic Policy: OECD: Healthcare costs unsustainable in advanced economies without reform


OECD published their report Fiscal Sustainability of Health Systems: Bridging Health and Finance Perspectives on 24 September, finding that going over budget on health spending remains endemic in most OECD countries. Maintaining today’s healthcare, and funding future medical advances, will be difficult without major reforms that will require health and finance ministries to work together...Although the crisis led to a slowdown in health spending growth, particularly in Europe, public expenditure on health and long-term care in OECD countries is set to increase from around 6% of GDP today to almost 9% of GDP in 2030 and as much as 14% by 2060, unless governments can contain costs, according to OECD projections...In Austria, the Czech Republic, Germany, Korea, Poland, the Slovak Republic and Slovenia, more than 70% of government financing for health comes from payroll contributions. Other than in France, “sin taxes” in the form of higher value-added taxes on tobacco, alcohol or unhealthy foods account for a tiny fraction...Read more.

Members of the American Chamber of Commerce in the Czech Republic