Health Expenditure Growth under Single-Payer Systems: Comparing South Korea and Taiwan

Area of Science:

• Health Economics
• Comparative Health Systems

Background:

• Universal health coverage is a global goal, but rising health expenditures challenge all nations.
• Single-payer systems are often viewed as more cost-efficient than multipayer systems.
• South Korea, despite a single-payer system, faces high health expenditure growth.

Purpose of the Study:

• To compare South Korea and Taiwan's health expenditure growth within similar single-payer systems.
• To identify factors contributing to differing health spending trends in South Korea and Taiwan.

Main Methods:

• Analysis of government statistical reports from South Korea and Taiwan (2001-2015).
• Inclusion of population, economic, health statistics, health expenditures, and social health insurance data.

Main Results:

• South Korea's per capita national health expenditure (NHE) grew 292% vs. Taiwan's 83% (2001-2015).
• Taiwan's NHI global budget cap may have limited expenditure growth.
• Less comprehensive South Korean NHI benefits and expanded coverage for vulnerable groups contributed to higher NHE growth.

Conclusions:

• South Korea experienced significantly higher health spending growth than Taiwan under comparable single-payer systems.
• Key factors include Taiwan's annual budget cap, comprehensive essential service coverage, and regulated resource distribution.