DEVELOPMENT OF SOCIAL HEALTH INSURANCE IN GEORGIA

Abstract

In 1995, the social health insurance system (Bismarck model) was introduced in Georgia. The social insurance system is more focused on the market mechanisms, where the responsibility for health will be equally and fairly distributed between the state, the employer and the employee. Despite the achievements, the introduction of social health insurance in Georgia turned out to be way too difficult. Due to ongoing economic crises, the state failed to finance its promised commitments, resulting in a chronic shortage of funding for health care system. In 2004, the United National Movement abandoned the idea of building a social insurance system and switched to a general tax financing model (Beveridge model), where the state takes a dominant lead, and the healthcare is financed from state budget. The same continued in 2012, by the new political party that came to power - "Georgian Dream - Democratic Georgia". Given that the social insurance system is the best way of mobilizing additional funds and therefore providing sustainable funding for health sector, it is advisable to promote social insurance development. The healthcare sector needs consistent, continued and successive reforms. Despite the change of governments, the strategic course should not change drastically in the long run and the achievement should not be denied due to the political climate change.