Submitted by SONGPHAN SINGKAEW As Requirement for the Degree Doctor of Philosophy for the London School of Economics and Political Science University of London, 1991
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POLICY OPTIONS FOR HEALTH INSURANCE IN THAILAND submitted by SONGPHAN SINGKAEW as requirement for the degree Doctor of Philosophy for the London School of Economics and Political Science University of London, 1991. UMI Number: U042967 All rights reserved INFORMATION TO ALL USERS The quality of this reproduction is dependent upon the quality of the copy submitted. In the unlikely event that the author did not send a complete manuscript and there are missing pages, these will be noted. Also, if material had to be removed, a note will indicate the deletion. Dissertation Publishing UMI U042967 Published by ProQuest LLC 2014. Copyright in the Dissertation held by the Author. Microform Edition © ProQuest LLC. All rights reserved. This work is protected against unauthorized copying under Title 17, United States Code. ProQuest LLC 789 East Eisenhower Parkway P.O. Box 1346 Ann Arbor, Ml 48106-1346 *r.3.((£fO«363>9 ABSTRACT This study explores the policy options for health insurance in Thailand, considering the present structure of the country and taking account of international experiences. The development of health insurance in Thailand is analysed from the supply side i.e. health services. The problem of inefficiency and inequity in the health care system has led to the search for better alternatives for organizing and financing. This coincides with the overall growth in the country's socio-economic situation and the policy of health insurance laid down in the Sixth Five Year Health Development Plan (1987-1991). These factors provide positive conditions for establishing health insurance in Thailand. The demand for health insurance from employers who are likely to join the scheme is investigated. A survey of 200 private establishments in Thailand was conducted. This investigation provides essential national baseline data for the organization of health insurance, particularly on the health care fringe benefits provided by employers, and the methods of paying health care providers. Methods of organizing health insurance are formulated from international experience. The historical development of voluntary health insurance and its modified forms, as well as that of compulsory health insurance, are examined. The arguments for and against each form of health insurance are analysed. The study also highlights salient issues of health care reforms which attract the world's attention. International experience has shown that methods of paying providers is a major issue in providing viable health insurance. The study comprehensively analyses the advantages and disadvantages of each method of paying the doctor and the hospital under health insurance systems. Finally, it explores the policy options for the future development of national health insurance in Thailand. TABLE OF CONTENTS Page ACKNOWLEDGMENTS................................... 1 LIST OF TABLES.................................... 2 LIST OF ABBREVIATIONS............................. 10 INTRODUCTION...................................... 11 PART ONE: A SITUATIONAL ANALYSIS OF THAILAND 17 Chapter 1. GENERAL COUNTRY INFORMATION................ 18 2. HEALTH CARE SYSTEM.......................... 51 3. HEALTH CARE FINANCING ...................... 75 4. HEALTH INSURANCE SYSTEM..................... 105 5. THE SURVEY OF HEALTH BENEFITS.............. 153 6. COST OF HEALTH BENEFITS.................... 204 PART TWO: AN INTERNATIONAL PERSPECTIVE 256 7. FORMS OF HEALTH INSURANCE.................. 257 8. PAYING THE DOCTOR........................... 316 9. PAYING THE HOSPITAL......................... 354 POLICY OPTIONS FOR HEALTH INSURANCE IN THAILAND 393 BIBLIOGRAPHY...................................... 431 Appendix 1. MAP OF THAILAND............................. 449 2. RESEARCH METHODOLOGY....................... 450 3. QUESTIONNAIRES............................. 473 ACKNOWLEDGEMENTS The author expresses her greatest gratitude to Professor Dr. Brian Abel-Smith for his continuous support, stimulated feedback, and determined guidance throughout the preparation of this thesis. Gratitude goes particularly towards Dr. Damrong Boonyoen for his valuable support from the beginning and throughout the study. The author is also grateful to Professor Dr. Thienchay Kiranandina of Chulalongkorn University f>r his thoughtful criticism on an early version of the survey results. Discussion with Dr. Supachai Kunaratanapruk and his criticism on an early draft of a particular chapter, was also a great help. For the final revision of the thesis, the author gives her gratitute to Andrew Green and Dr. Anne Mills for their constructive criticism. The Foreign and Commonwealth Office Section of the British Council is thanked for giving the author financial support throughout her time in England and for allowing a short study visit to The Netherlands. The World Health Organisation is acknowledged for financing the field research carried out in Thailand, in 1988. Thanks also go to the Health Planning Division of The Ministry of Public Health, Thailand, for giving study leave from 1987 to 1991 to pursue these studies at the London School of Economics. Appreciation also goes to Kobkul Lertkasat for retrieving data on industrial relations, and Lily Ingsrisawang and her friend for computing the survey data collected. For arranging meetings with establishment owners outside of Bangkok, thanks go to the provincial Health Planning Officers of the provinces surveyed. Special word for thanks is owed to Dr. Suwit Wibulpolprasert for his support before and during the course of the field study. Friends in the Health Planning Division, to name a few; Nuananun Tantigate, Wanpen Sukhotanung, Ngamjit Jandarasatit, Sumaporn Saelim, Burarak Kaewnooch, and the interviewers, are thanked for their contributions in the field research. The author is also indebted to Porntip Ngamkasem, Sukanya Pattarawimon, Orasa Kowinta, Pat Kasikam, Dr. Somsak Chunharas, Dr. Sanugan Nittayarampong, Dr. Petsri Sirinirund, Dr. Apinan Aramrat, Dr. Kamnuan Ungchusak, Dr. Porntep Sirivanarungsun, Krongkarn and Seksan Singkaew, Sangud Tansittipat and others who have not been specifically named for furnishing the author with valuable materials during the course of writing this document. Michael Franks receives the author's special thanks for his invaluable help in computer technical matters and for enthusiastically reading and making grammatical corrections to the manuscript. Bernice Gummer also receives the author's thanks for her grammatical corrections to the manuscript. The author is indebted to Dr. Supasit Pannarunothai for his invaluable help with further statistical analysis for the final revision and printing of the thesis. Finally, the author alone is responsible for all remaining errors. 1 LIST OF TABLES Table Page 1.1 The number and average population size of each administrative level in Thailand........... 22 1.2 GDP, GDP per capita and Growth rate of GDP, 1970-1989 ................................. 28 1.3 The income distribution accruing to quintile groups of household ranked by total household income, 1975/6, 1980/1 and 1985/6.......... 29 1.4 Characteristics of the Thai population, 1947-80. 32 1.5 Trend of death from non-communicable diseases and communicable diseases, 1981-85.......... 36 1.6 Comparing the ten leading causes of death in 1985 between the two sources of data....... 37 1.7 Major causes of death in urban and rural populations, 1985.......................... 38 1.8 Estimated crude death rate and infant mortality rate............................. 40 1.9 Morbidity rate of the six leading groups of illnesses in Thailand, according to out-patient reports, 1987.................. 42 1.10 Per cent and morbidity rate of in-patients by ten major causes of disease, 1983-4........ 43 1.11 Incidence rate of the top ten leading causes of illness per month, 1985................. 44 1.12 Prevalent rate of illness or injury, and hospitalization in Thailand, 1985.......... 45 1.13 Episodes of illness and hospitalization per person per year by region of usual residence, 1985............................ 46 1.14 Age - sex differences in episodes of illness or injury, and episodes of hospital admission in Thailand, 1985................ 47 1.15 The occupational differences in the prevalent rate of illness or injury of persons aged 10 years and over, per month.............. 48 2 Health care facilities in Thailand, 1989-90.... 61 Health care facilities in Thailand, classified by administrative level, 1989.............. 62 The number of total beds in Thailand, 1987.... 64 The population per bed by region, 1987........ 64 Number of traditional medicine facilities in Thailand, 1989............................. 67 The number of health personnel completing training by educational institution, 1988... 70 Number and percentage of health manpower in Thailand, 1986............................. 71 Regional distribution of health personnel in Thailand, 1986............................. 72 Population per one health personnel by region, 1986....................................... 73 Expenditure on health expenses and health services................................... 76 Total public expenditure and total expenditure on health.................................. 77 Percentage of health service expenditure in Thailand by sources of finance............. 78 Sources of government revenue, fiscal year 1983-6..................................... 80 Public expenditure on health, 1978-87......... 81 MOPH expenditure as a percentage of total public expenditure, public expenditure on health,