ROLE OF TAXES AND CONTRIBUTIONS IN THE FUND OF THE HUNGARIAN HEALTHCARE SYSTEM

Herczeg Adrienn () and Darabos Éva ()
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Herczeg Adrienn: University of Debrecen
Darabos Éva: University of Debrecen

Annals of Faculty of Economics, 2017, vol. 1, issue 1, 365-372

Abstract: The essential function of the taxation is to create the revenue required for financing of the social common consumption so, inter alia, it plays role in the sustainability of the healthcare system. Nowadays, sustainability of financing of the health systems is one of the most challenges for each country. At present, the organization and financing of the health care are a matter of national competence in the EU member states; the fund raising assets include the taxes, contributions and the direct payments of beneficiaries. In our article, we will take into account the tax and contribution rules and trends thereof established in the last decade, examining what effects they had on the fund raising structure of the healthcare system. Data in the essay originates from the database, almanacs and reports of OEP and the World Health Organisation (hereinafter WHO) as well as from the budget legislation. Examining the changes in the revenue structure of Health Insurance Fund during in the last two decades, a significant realignment of resources can be observed: the rate of employers’ contributions has decreased and the rate of individual contributions has tripled, so it becomes clear that the system is social security system only namely and partially; it is financed by the taxes too, paid by everyone. Based on the revenue structure of the Health Insurance Fund of 2016, it can be seen that contribution revenues and contributions are 60.38%, while budget contributions are 20,3% of the total revenue. The amount and rate of social contribution tax was paid to the Health Insurance Fund increased to 20.50% in 2017. In 2012 accident tax, public health product tax and the health contribution of tobacco industry businesses were introduced, the aggregate amount of these taxes was 2.9% of the total revenue. We have found out that the necessity of a reform in the fund raising is a real problem for the Hungarian healthcare system of nowadays which may be a tool for creating the sustainability.

Keywords: tax; contributions; healthcare system; Health Insurance Fund; revenue structure; social contribution tax (search for similar items in EconPapers)
JEL-codes: M48 (search for similar items in EconPapers)
Date: 2017
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