8/11/2019 Indonesia: Health Care Mega-Spending Whose Have No
Complaints?
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AXIS Capital is a group of global insurer and reinsurer,
providing clients and distribution
partners with a broad range of specialized risk transfer
products and services, i.e. health
insurance that serves a host of industries and diverse coverage
needs through our
operating subsidiaries and branch offices in Bermuda, Australia,
Canada, Europe, Latin
America, Singapore and the United States.
An effort to guarantee universal health careprovision by 2014 in
the worlds fourth-mostcrowded country essentially requires
large-scale investments, and is opening up
opportunities for the private sector.
Indonesia is obligating billions of dollars as it targets to
meet the governmentspromise to
run universal health care for its 240m citizens by January 1,
2014. This investment, joint
with the robust economic growth that is boosting Indonesians
incomes, is leading to fast
growing mandate for health services, equipment and
pharmaceuticals, in addition to a
must for more medical professionals. Reviews says the country is
fast becoming one ofthe worlds most-important health care markets,
and international and domestic firms are
progressively profiting as the market grows and opens up.
The establishment of universal coverage involves the creation of
a Social Security
Management Agency (BPJS), linking existing public insurance
schemes and prolonging
them to cover all Indonesians deprived of health insurance. The
BPJS will gather
insurance premiums and pay health care bills, and is anticipated
to begin an early
investment of Rp25trn ($2.59m).
It must be the worlds largest single payer of health care, a
sole payer being a body
which buys health care from a single insurance pool. The UKs
National Health Service
(NHS) is presently the worlds major single payer. But a warning
though, be very
watchful of insurance scams and frauds.
8/11/2019 Indonesia: Health Care Mega-Spending Whose Have No
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The BPJS will conquest schemes like Jamkesmas, an insurance
programme presented in
2008 that covers more than 75m poorer Indonesians. According to
the international press,
the Jamkesmas scheme offers a broad safety net but not a great
depth of coverage, with an
annual budget of less than $10 per head. Presently, around 40%
of the population is
covered by insurance schemes providing for state employees and
their dependents, along
with the poor.
Similar to the growth of insurance coverage, the government and
private sector are
working to upsurge the capability of the sector. Our estimates
say the government will
require about 150,000 hospital beds by 2014. That means
increasing the number of beds
by 30% in only two years, as the current number of beds in the
country is approximately
110,000, Jonathan Sudharta, the director of Mensa Group, told
OBG.
According to the UNs World Health Organisation (WHO) currently,
the country has a
ratio of six hospital beds per 10,000 people, compared to 18 in
Malaysia and 21 in
Thailand.
Increasing health care will furthermore require a considerable
upsurge in the amount of
health care professionals. At this time, the country delays
behind regional standards for
the quantity of doctors as a proportion of the population:
Indonesia has three physiciansper 10,000 people, while Malaysia has
nine and India, six. There is both a scarcity of
medical graduates and the challenge of brain drain, whereby
several of Indonesias best
doctors and nurses relocate abroad to work, counting to
Malaysia, where wages are a lot
higher and facilities better.
Reference:
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