Increasing Health Resources in Bolivia
Estimation Year
1996, 1997, 1998, 2000
Actual Policy Use
Reduce MOH subsidies to the social security system. After conducting NHA, the government learned that social security was spending 10 times more on health per capita than the MOH; this figure was higher than what was previously thought. This finding - combined with the fact that in some areas (e.g., teachers in rural areas) and for some services (e.g. immunizations) social security contributors were using MOH facilities and programs - was used by the MOH to negotiate a “tax” on social security with the MOF. This “tax” constitutes a transfer of a certain percentage (initially 10%, but reduced to 5% in 1999) of the social security budget to the MOH. These monies are used to support public goods such as immunizations, and the malaria program. The justification is that social security contributors use these services provide by the MOH and hence their social security contributions should be used to pay the provider, in this case the MOH.
Source
Fernando Lavandnez, Former Head of Health Reform Unit, MoH
