Govt subsidy won't meet minimum health costs

Debbie A. Lubis, The Jakarta Post, Jakarta

The government said on Wednesday it could not afford to pay for free health services for the country's poor despite almost doubling the amount of money in a special health fund.

Minister of Health Achmad Sujudi said the government would disburse a total of Rp 950 billion in April, a significant increase from last year's Rp 500 billion. The money will come from the government's fuel subsidy fund.

The government has removed the fuel subsidy in a bid to reduce the budget deficit and cut dependence on foreign donors, notably the International Monetary Fund (IMF).

To cushion the impact of the fuel subsidy removal, the government has increased subsidies for certain sectors, including health and education.

For health the government has allotted Rp 950 billion, which it plans to begin disbursing in April.

Sujudi said the health fund would still be insufficient to provide the minimum monthly health expense of Rp 8,000 per person. The money will be distributed to some 47.9 million poor people across the country.

Sujudi said the fund would only cover Rp 1,654 of the minimum Rp 8,000 per poor person per month.

"We hope regional administrations can cover the gap to ensure the poor receive basic health services, but only a few of them seem willing to do so," Sujudi said.

Sujudi said some Rp 33 billion of the total health fund would be used to pay for TV commercials, health campaigns and monitoring and evaluation programs conducted by universities.

The government also has allocated Rp 143 billion for poor families to receive health care at public health centers, and Rp 326 billion for health facilities in state-run hospitals.

Sujudi said the government also allocated some Rp 130 billion to help the poor receive free generic medicine and Rp 35 billion to vaccinate 1.4 million babies against hepatitis B.

Some Rp 69 billion will be used to upgrade 244,832 health posts providing care for babies and toddlers throughout the country.

Sujudi said three provinces -- Jakarta, Yogyakarta and Aceh -- and 15 regencies had agreed to provide some money to ensure free health care for the poor this year.

"They are our pilot projects this year to provide free health services for the poor through health insurance," he said.

In general, money from the health fund is given directly to every public health center and state-run hospital across the country.

Azrul Azwar, director general of community health at the Ministry of Health, said that to meet the insurance premium of Rp 384,000 per poor family per annum, regional administrations have to provide Rp 298,000 per poor person per annum because the compensation fund can only provide some Rp 86,000.

"Regional administrations could make some cuts in their administrative expenses if they do not have the money so that the poor can enjoy decent health services," he said.

Azrul said five state-run universities would monitor the use of the health sector compensation fund from the fuel subsidy removal in 371 regencies.

"We need them to ensure that the money is received safely by the recipients and used wisely by related institutions because there is often corruption at the grassroots level," Sujudi said.