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The financing of health care could be viewed as a demonstration of the value society places on health. This chapter explores Malaysia’s financial commitment towards providing access to health care and protection from catastrophic health expenditure during 60 years of evolution of the health system. The analysis includes trends of total health expenditure as a proportion of gross national product and trends in financing from various sources that reflect the dichotomy between the public and private sectors, the related mechanisms for financing health care services and the impact on service delivery. Notable is that high out-of-pocket expenditure was not associated with catastrophic household financial health expenditure. The author notes the role of pooled tax funds in providing relatively affordable health care in the public sector. The growing private sector together with the rising health expenditure due to demographic, epidemiologic and technological changes brings into focus changes that will be needed to sustain the social efficiency of the system.
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