![]() Although this may seem small in proportion to the national commitments of rich countries, for low-income countries at the receiving end of the transfers, these resources are substantial in Sub-Saharan Africa they finance more than 25% of total expenditure on healthcare. ![]() These flows – which saw a steep increase after the introduction of the Millennium Development Goals – account for around 0.7% of the resources spent by high-income countries on healthcare. Healthcare financing in developing countries in the 21st century has been largely shaped by the flow of resources channeled through development assistance. Moreover, in contrast to high-income countries, in low and middle-income countries the public share of healthcare funding is much lower – although it has been catching up – and the role of out-of-pocket expenditures is much higher (above 50% of total expenditure in many countries). Regionally, high-income countries spend – and have been spending – a much larger share of their income on healthcare than low-income countries (about twice as much). In the background, however, there has been substantial cross-country heterogeneity, both in levels and trends. Global expenditure on healthcare as a share of world income has been increasing, steadily but slowly over the course of the last couple of decades. currently spends more government money per person on healthcare than many countries that fund universal programs, and (ii) spending is so concentrated that the top 1% of spenders account for more than 20% of total healthcare expenditure. This occurred without major changes in insurance coverage and had two important consequences: (i) the U.S. experience: in recent decades, as treatment possibilities expanded rapidly, expenditure on healthcare increased – in any way you want to measure it: private and public, both per capita and as a share of gross domestic product. ![]() The impact that scientific developments had on healthcare expenditure is epitomized in the U.S. 2 Data from these early systems shows that healthcare expenditure only began rising several years after the expansion of insurance coverage, with the discovery of powerful new treatments. 1 The first examples of legislation on health insurance date back to the late 19th century. Publicly funded healthcare is a legacy of the Age of Enlightenment. There are many other factors affecting health, and you can read more about some of them in our entries about health. In this entry we focus on health care – one of the most important inputs to protect and improve health. Good health is a key part of our quality of life.
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