To address the issue of high health care costs in the Philippines, the Pharmaceutical and Healthcare Association of the Philippines (PHAP) has recommended increasing public health spending and ensuring access to medicines at all levels of care. This comes in response to a report released by the World Health Organization (WHO) Western Pacific Region, titled “Progress Towards Universal Health Coverage: Monitoring Financial Protection in the Western Pacific Region,” which highlighted the significant financial burden faced by individuals in the region.
The report revealed that 1 in 5 people, approximately 385 million individuals, are experiencing catastrophic health spending. Medicines were identified as the primary drivers of out-of-pocket spending, accounting for 62 percent of expenses in the Philippines in 2019.
PHAP Executive Director Teodoro Padilla emphasized the importance of implementing strategies to improve access to medicines, such as pooled procurement, outpatient drug benefit packages, and value-based and risk-sharing agreements. These strategies have proven successful in reducing private share in medicine spending in countries like Australia, Malaysia, South Korea, the United Kingdom, New Zealand, and Thailand.
Padilla also highlighted the power of price negotiations, pooled procurement, and private sector engagement, which are supported by the Universal Health Care and/or Cancer Act. He cited the Department of Health’s previous experience in significantly reducing the price of a cancer drug through bulk procurement.
Currently, Filipino families bear a significant portion of the cost of medicines, with an estimated 85 percent being paid out-of-pocket or shared through voluntary private insurance for every P100 spent. In line with the desire to eliminate out-of-pocket expenses, a survey conducted by the Social Weather Stations (SWS) revealed that 96 percent of adult respondents believe that the government should provide free medicines to those in need.
While PHAP supports the goal of eliminating out-of-pocket expenses, it also emphasizes the need to streamline the review processes in the Health Technology Assessment (HTA) and Philippine National Formulary (PNF). HTA serves as a tool to prioritize drugs for inclusion in the national formulary, which may qualify for government procurement and/or PhilHealth reimbursement.
Padilla stressed that when the review processes and criteria facilitate the inclusion of innovative medicines, they become available in public health facilities and are covered by PhilHealth, thereby reducing out-of-pocket spending for medicines.
In addition to working with the government for the full implementation of the Universal Health Care and the National Integrated Cancer Control Act, PHAP supports the WHO’s call for governments to prioritize investments in health and implement effective policies to protect the most vulnerable populations. This will contribute to achieving universal health coverage and reducing catastrophic health spending.
Padilla highlighted the commitment of PHAP and its members to ensure access to diagnostics, vaccines, and medicines needed for Covid-19 and other health conditions, despite the challenges posed by the global pandemic and geopolitical concerns. He emphasized the importance of continued collaboration as the country recovers from the pandemic and faces other health challenges.
The recommendations put forth by PHAP aim to address the high cost of health care in the Philippines by increasing public health spending and improving access to medicines. By implementing strategies such as pooled procurement and outpatient drug benefit packages, and streamlining the review processes in HTA and PNF, the country can reduce the burden of out-of-pocket spending and move closer to achieving universal health coverage for all Filipinos.
Source: The Manila Times
