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Web-economic-crisis-health-systems-and-health-web Web-economic-crisis-health-systems-and-health-web
Chapter 2 | The impact of the crisis on the health system and health in Estonia 67 agreement between government and different stakeholders: and various working groups were set up to review strategic directions for health system reforms. 4.5 Impact on health The fastest increase in life expectancy in Estonia since the early 2000s was seen during the years of the economic crisis 2008–2010, when it increased by approximately one year annually (Fig. 2.11). The increase in male and female life expectancy was similar, leaving a 10 year gap between genders (71.2 and 81.1 years, respectively, for men and women). Healthy life expectancy in Estonia increased over the period, 2004–2009, by more than four years for both men and women, but starting in 2010 this measure began to decrease by almost two years reaching 53 years in males and 57 years in females in 2012. Fig. 2.11 Average life expectancy at birth in Estonia, 2001–2011 Life expectancy (years) 85 80 75 70 77.8 77.0 76.9 76.0 76.2 70.6 70.4 71.0 71.6 72.0 65.1 66.0 66.3 64.6 65.1 78.5 78.7 79.2 73.0 73.0 74.1 68.6 67.4 67.1 80.1 80.5 81.1 75.0 75.8 76.3 70.6 71.2 69.8 65 60 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Source: Statistics Estonia, 2013a. Total Male Female The standardized death rate from external causes per 100000 inhabitants decreased from 164.0 in 2008 to 140.2 in 2012 for males and from 34.4 to 28.3 for females. A similar pattern can be observed for cardiovascular diseases, where the standardized death rate decreased by 18% for both males and females during the same period. HIV incidence came down from 108.1 diagnosed cases per 100000 in 2001 to 47.2 in 2007, and continued to decrease during the crisis to 24 in 2012, while tuberculosis incidence also fell from its highest point of 59.4 cases per 100 000 in 1998 to 34.8 in 2007, and to 20.8 in 2012. The crisis seems to have had a dampening effect on alcohol consumption. The high consumption of alcohol is a serious public health issue in Estonia.
68 Economic crisis, health systems and health in Europe: country experience Consumption of pure alcohol per capita increased from 5.6 litres in 1995 to 12.6 litres in 2007 as the relative price of alcohol decreased as incomes grew faster than alcohol prices. Alcohol consumption did fall during 2008–2010 (9.7 litres of pure alcohol per capita in 2010) as incomes dropped during the economic crisis and as alcohol excise taxes were raised. During 2011 and 2012, consumption increased to 10.6 litres of pure alcohol per capita as incomes started to increase. Lower alcohol consumption rates explain the reduction in injuries and deaths from external causes in 2008–2010; and it is also partly the reason for increasing life expectancies. In addition, lower fatality rates in road traffic accidents are probably also partly related to decreased alcohol consumption: the number of death caused by road traffic accidents decreased from 196 in 2007 to 132 in 2008 and to 100 in 2009 (Maanteeamet, 2013). 5. Discussion 5.1 Drivers of change The response of the health system to the crisis was part of a coordinated government policy guided by the aim of fulfilling Maastricht criteria in spite of the unfavourable economic environment. The fact that the objective of joining the Eurozone was publicly accepted made it easier for the government to justify crisis-related reforms and decisions. It took over six months for the government to understand the seriousness of the crisis. The first signs were noticed in early 2008 but still most of the decisions were made according to pre-crisis forecasts. In September 2008, the Ministry of Finance's forecast were still calculated on the basis of 10% growth for EHIF revenues in 2009, and in the following January the EHIF's supervisory board approved an increase in health service tariffs. However, implementation of this decision was postponed because of the increasingly pessimistic economic outlook. By the end of February 2009, the parliament had approved an amendment of the government budget. This amendment included a package of decisions to contain and cut public sector expenditure, among which was the reform of temporary sick leave benefits, which came into force in mid-2009. This was a long-debated reform and a striking example of how the crisis created an opportunity to reach political agreement and implement the otherwise controversial cuts. 5.2 Content and process of change At the end of October 2009, the scale of the crisis increased further, prompting the approval of an overall reduction in health service tariffs by 6%, which came
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68 Economic <strong>crisis</strong>, <strong>health</strong> <strong>systems</strong> <strong>and</strong> <strong>health</strong> in Europe: country experience<br />
Consumption of pure alcohol per capita increased from 5.6 litres in 1995 to<br />
12.6 litres in 2007 as the relative price of alcohol decreased as incomes grew<br />
faster than alcohol prices. Alcohol consumption did fall during 2008–2010<br />
(9.7 litres of pure alcohol per capita in 2010) as incomes dropped during the<br />
<strong>economic</strong> <strong>crisis</strong> <strong>and</strong> as alcohol excise taxes were raised. During 2011 <strong>and</strong> 2012,<br />
consumption increased to 10.6 litres of pure alcohol per capita as incomes<br />
started to increase. Lower alcohol consumption rates explain the reduction in<br />
injuries <strong>and</strong> deaths from external causes in 2008–2010; <strong>and</strong> it is also partly<br />
the reason for increasing life expectancies. In addition, lower fatality rates<br />
in road traffic accidents are probably also partly related to decreased alcohol<br />
consumption: the number of death caused by road traffic accidents decreased<br />
from 196 in 2007 to 132 in 2008 <strong>and</strong> to 100 in 2009 (Maanteeamet, 2013).<br />
5. Discussion<br />
5.1 Drivers of change<br />
The response of the <strong>health</strong> system to the <strong>crisis</strong> was part of a coordinated<br />
government policy guided by the aim of fulfilling Maastricht criteria in spite of<br />
the unfavourable <strong>economic</strong> environment. The fact that the objective of joining<br />
the Eurozone was publicly accepted made it easier for the government to justify<br />
<strong>crisis</strong>-related reforms <strong>and</strong> decisions.<br />
It took over six months for the government to underst<strong>and</strong> the seriousness of the<br />
<strong>crisis</strong>. The first signs were noticed in early 2008 but still most of the decisions<br />
were made according to pre-<strong>crisis</strong> forecasts. In September 2008, the Ministry<br />
of Finance's forecast were still calculated on the basis of 10% growth for EHIF<br />
revenues in 2009, <strong>and</strong> in the following January the EHIF's supervisory board<br />
approved an increase in <strong>health</strong> service tariffs. However, implementation of<br />
this decision was postponed because of the increasingly pessimistic <strong>economic</strong><br />
outlook. By the end of February 2009, the parliament had approved an<br />
amendment of the government budget. This amendment included a package of<br />
decisions to contain <strong>and</strong> cut public sector expenditure, among which was the<br />
reform of temporary sick leave benefits, which came into force in mid-2009.<br />
This was a long-debated reform <strong>and</strong> a striking example of how the <strong>crisis</strong> created<br />
an opportunity to reach political agreement <strong>and</strong> implement the otherwise<br />
controversial cuts.<br />
5.2 Content <strong>and</strong> process of change<br />
At the end of October 2009, the scale of the <strong>crisis</strong> increased further, prompting<br />
the approval of an overall reduction in <strong>health</strong> service tariffs by 6%, which came