Health Financing

Health financing remains inequitable and inefficient.

Despite COVID-19-related spending surges in 2021, low-income countries saw declining health priority in government budgets. The latest data shows that 2 billion people suffer financial hardship.

Insights

Political: Many countries lack sustained political will to prioritize health in national budgets.

Economic: Inadequate domestic spending leave health systems vulnerable and millions financially exposed during illness.

Social: Health financing gaps hit poor and marginalized communities the hardest, with 2 billion people facing financial hardship due to healthcare expenses.

Technological: Digital tools for budgeting, cost-tracking, and payment systems remain underutilized in health financing reform.

Legal: Only a few countries have strong systems to ensure fair health financing or to protect public funds from being diverted away from primary and preventive care.

Environmental: External shocks—climate, pandemics, global supply chain disruptions—highlight the risks of weak, centralized, and underfunded systems.

Reflective Questions

  • How might countries shift toward more resilient and equity-focused health financing models?

  • What policy levers can increase domestic investment in foundational health services?

  • How can financial protection mechanisms be scaled to eliminate catastrophic spending for the most vulnerable?

Related Insight Cards

References:

World Health Organization and International Bank for Reconstruction and Development / The World Bank, 2023. Tracking universal health coverage: 2023 global monitoring report. Geneva: World Health Organization and The World Bank. Available at: https://iris.who.int/handle/10665/374059

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