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Executive Summary The results of the 2005 PNHA reveal the following: Total health expenditure up by 9.4 percent in 2005 The total health expenditure in the country went up by 9.4 percent in 2005, from P165.3 billion in 2004 to P180.8 billion in 2005. This could largely be attributed to the increase in health benefit payments from social insurance, such as the Employees’ Compensation and the PhilHealth. Compared with the previous year, the growth in 2005 was slower than the 11.9 percent increase in 2004. Per capita health spending increases With the total health expenditure growing faster than the population, per capita health spending went up by P142, from P1,978 in 2004 to P2,120 in 2005 or a 7.2 percent increase. Share of health expenditure to GDP goes down The share of health expenditure to GDP was lower at 3.3 percent in 2005 compared to previous year’s 3.4 percent. It is still below the 5 percent standard set by the World Health Organization (WHO) for developing countries. On the other hand, the share of health expenditure to GNP remained at 3.1 percent which is within the National Objectives for Health (NOH) target of 3-4 percent. Health benefit payments from social insurance exhibit the highest growth Health benefit payments from social insurance showed the highest growth rate at 24.9 percent or a P4.0 billion increase in 2005. This resulted from the big hike in payments from Employees' Compensation at 42.4 percent and PhilHealth at 24.4 percent. Government health spending remains far from the HSRA target The share of government on health expenditure declined to 29 percent which is below the target of 40 percent based on the Health Sector Reform Agenda (HSRA). Also, the government's target to depend less on out-of-pocket payments and provide more social health insurance is still far from being realized as the share of out-of-pocket payments even increased to 49 percent while the share of social insurance payments increased only slightly to 11 percent in 2005. Based on the HSRA, the target for out-of-pocket is 20 percent while the target for social insurance is 30 percent.