Insuring Our Health: Financing Healthcare in the FSM

Hezel, Francis X.; Samo, Marcus H (2001-09-13). Insuring Our Health: Financing Healthcare in the FSM. Micronesian Counselor (Report). Kolonia, Pohnpei: Micronesian Seminar. pp. 1–6.

• Has attachment: File:FFL3W293.pdf

Abstract: Years ago, when we were still a trust territory, a visit to a dispensary in the village or even to the hospital cost only ten cents. When essential medicines, such as antibiotics, medical supplies and personnel were needed, they were provided free of charge. If a patient needed off-island care, he or she was flown to Guam or Hawaii on a naval or commercial flight at no cost to the patient. The Trust Territory Administration paid the bill for all of this. Health care was perceived by Micronesians as a social right, and people were by and large content with the services they received. Today, we are an independent nation. US subsidies to the FSM have dropped and are bound to decline still more in years ahead. Mean- while, the cost of health care has multiplied many times over and people no longer seem content with the services they receive.

While we may still perceive health care as a social right--a service that the government owes us--the fact is that someone has to pay the cost. Until recently, the practice had been that the government bears most, if not all of the cost, while charging the public only nominal fees. This practice has made it impossible for hospitals to recover any substantial part of their expenses. As health care becomes more expensive and budget problems continue to grow, a more viable means of financing health care must be explored further with local hospitals, government policy and decision makers, private clinics and insurance plan managers.