Social health insurance system in Georgia: development barriers (ჯანმრთელობის სოციალური დაზღვევა საქართველოში: განვითარების ბარიერები)
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Date
2021
Journal Title
Journal ISSN
Volume Title
Publisher
Ivane Javakhishvili Tbilisi State University Press
Abstract
Georgia’s healthcare system reform, which began in 1995, was one of the
first state reforms in the country’s recent history. When creating a new financing
system, the choice stopped on the social insurance model. The aim of the paper
is to study the reasons for the introduction of health social insurance in Georgia,
in particular, why Georgia chose the model of health social insurance (Bismarck
model) and not general tax financing (Beveridge) and what were the challenges
associated with its development? The social security system, unlike Beveridge’s
general tax financing system, is more focused on introducing market mechanisms
where health responsibilities are evenly and equitably distributed among the
state, the employer and the employee. Despite the achievements, the introduction
of health social insurance turned out to be more difficult than expected. Due
to the ongoing economic crises, the state was unable to finance its promised
commitments, resulting in a chronic shortage of funding for the health care.
The United National Movement, which came to power in 2004, abandoned
the construction of a social security system and switched to a general tax
financing model (Beveridge), which excludes the insurance principle and is
quite similar to the Semashko system, as the state plays a more dominant role.
From general tax revenues. The same thing happened in 2012, with the new
political party “Georgian Dream - Democratic Georgia” coming to power. Given
that the social insurance system is the best way to mobilize additional funds
for the health sector and therefore sustainable funding, as well as better ensure
cost containment and increase the transparency of the system, it is advisable
to promote the development of social insurance in the country. The healthcare
sector needs reform consistency, continuity and heredity. Despite the change of
governments, in the long run the strategic course should not change drastically
and the achievement should not be denied due to the change of political
conjuncture.
Description
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Keywords
Social Security system, healthcare reforms, general tax financing (Beveridge) model
Citation
Economics and Business, №2, 2021, pp. 196-213