B u d a p e s t
B u s i n e s s
S c h o o l ,
F a c u l t y
F i n a n c e
a n d
A c c o u n t i n g
Table of Contents
TABLE AND CONTENTS List of Tables and Figures INTRODUCTION CHAPTER I. Principals and Features of Hungarian Health care CHAPTER II. The Health Care System in the USA CHAPTER III. Hungary – Problematic Issues and Possible Solutions CONCLUSION AND SUMMARY APPENDIX 18 36 43 45 5 2 3 4
Sources for each table and figure are indicated in the tax as footnotes. Tables and Figures Table 1 Table 2 Table 3 Table 4 Table 5 Table 6 Table 7 Table 8 Table 9 Contributions Paid by Employers, pg. 7. Contributions Paid by Employees, pg. 8. Assessment of Total Contributions, pg. 9. Demographic Data pg. 9. Employment and Unemployment pg. 10. Demographic Data pg. 11. Changes in Average Gross Salaries, pg. 12. GDP Data pg. 12. Growth Rate in Wages and Contributions pg. 13. The Structure of health Care Market pg. 14. Financial Sources pg. 16. Health Insurance Coverage USA pg. 24. Insurance and Non-insurance USA pg. 25. Distribution of Financing USA pg. 26. Private Insurers’ Market Shares pg. 28.
Table 10 Table 11 Table 12 Table 13 Table 14 Table 15
In our paper we aim to highlight the main factors that influence the health care financing nowadays. We chose this theme because it is a hot topic not only in Hungary, but also worldwide. Since Hungary’s social security system is highly centralized with very much government intervention, it was an obvious choice to compare it to the other side, the primarily privately controlled system operating in the United States. It is clear that none of the two systems are perfect and each has its positive and negative sides. These differences will help us deduct some very important implications with regard to the necessary reforms in Hungary. In the first chapter we will focus on the Hungarian national social security system as whole, giving a comprehensive description of this complex system starting from the legal and practical basis until to the macroeconomic aspect. After discussing this, in the second chapter we would like to elaborate on the other pole – the so called „classic American model” that is traditionally financed by private insurance companies and highlight the most important features that we want to use in our solution. We are going to discuss on the present changes made in the US health care field (executed by the Obama administration) and test if these reforms have proven to be any more efficient than the classic system. We are going to ask the same questions as in case of the social system, and compare the two. It is important to note, that our goal is to highlight the financial factors of this issue, and try to treat the economic and financial questions apart from social issues, that are not part of our topic. In the end, after having a deep and thorough understanding of the two systems we hope to be able to highlight the positives and negatives and with the attempt of eliminating or at least mitigating the negatives and emphasize the pros. Our purpose is to come up with a completely new structure and a down-to-earth strategy that would combine the features of both public and private health insurance as an alternative that could eliminate the pitfalls of the currently operating system in Hungary and would lead to effectiveness, development and innovation in health care.
Hungarian public health care is highly centralized under the institution of...