Web-economic-crisis-health-systems-and-health-web

Greece
Charalampos Economou and Daphne Kaitelidou
Economic trends
• Real GDP per capita growth was negative in 2009 and the lowest in the
European region in 2010 (-5.8%) and 2011 (-6.0%). In 2009, Greece
had the largest budget deficit in the European region and has since
reduced government spending as a share of its economy.
• Unemployment has been increasing sharply since the onset of the crisis.
• Ten-year bond rates have increased throughout the crisis and were the
highest in Europe in 2011. Beginning in 2010, Greece received bailout
funds from the IMF and Eurozone countries.
• Health spending as a share of GDP, which had been below average
even before 2008, was reduced in 2011. Per capita OOP expenditure
declined in 2011 by 37.0%, a notable shift in the trend (Greece: Figs 1
and 2).
Policy responses
Changes to public funding for the health system
• MoU bailout stipulations required public spending on health to be cut
by 0.5% of GDP in 2011 and to be kept below 6% of GDP in 2012; as
a result, the 2011 health budget decreased by €1.9 billion; between 2009
and 2012, public spending on health fell by 25.2% (€4 billion).
• The MoU stipulated a reduction in government transfers to social health
insurance for civil servants, which changed from being an open-ended
commitment to cover any expenditure exceeding civil servants' own
contributions (2.55% of gross earnings) to a fixed contribution rate of
5.1% of gross earnings (2011).
• The Public Investment Programme provided €65 million to fund policies
implemented by the Ministry of Health in 2012 and €45 million for
2013.
• Contributions paid by retired civil servants were increased from 2.55%
to 4% (2013).