Cato Institute
Policy Analysis
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Conditions in
centage of GDP on health care, expenditures
Inpatient care and primary care are free at
have been rising rapidly in recent years and
the point of treatment. However, copayments
Italy's public
have consistently exceeded government fore-
are required for diagnostic procedures, special-
hospitals are
ists, and prescription drugs.95 The size of such
casts.101 Between 1995 and 2003, total health
care spending rose by 68 percent.102 The Italian
considered
copayments has crept steadily upward over the
past decade and now runs as high as 30 percent
government has taken various steps to try to
substandard,
for some services.96 Several attempts have been
control costs, such as reducing reimbursement
particularly in
rates, increasing copayments, reducing capital
made to impose copayments for a broad range
expenditures, contracting with private provid-
of services, including primary care, but have
the south. They
collapsed in the face of public protests.97 In
ers, and limiting prescription drugs. All of
lack not just
these measures have met with protests, includ-
addition, nearly 40 percent of the population
modern
ing physician strikes, and many have been
(the elderly, pregnant women, and children)
are exempt from copayments.98
repealed after only a short time.103
technology, but
Italians have limited choice of physician.
The Italian government does not provide
basic goods and
They must register with a general practitioner
official information on waiting lists, but
services; and
within their LHA. They may choose any GP in
numerous studies have shown them to be
the LHA but may not go outside it. Except for
widespread and growing, particularly for diag-
overcrowding is
emergency care, a referral from a GP is required
nostic tests. For example, the average wait for
widespread.
for diagnostic services, hospitalization, and
a mammogram is 70 days; for endoscopy, 74
days; for a sonogram, 23 days.104 Undoubtedly,
treatment by a specialist. Despite these limits,
Italians enjoy more choice of physician than do
this is due in part to a shortage of modern
the British or Spanish.
medical technology. The United States has
Most physicians are reimbursed on a capi-
twice as many MRI units per million people
and 25 percent more CT scanners.105 Ironic-
tated basis (i.e., according to the number of
patients served over a given time period rather
ally, the best-equipped hospitals in northern
than the services actually provided), although
Italy have even longer waiting lists since they
some hospital physicians receive a monthly
draw patients from the poorer southern
regions as well.106
salary. Hospitals are generally reimbursed
according to DRGs, with rates set by the cen-
If delays become excessive, patients may
tral government--though regions sometimes
seek permission from the regional govern-
disregard those rates and set their own.
ment to obtain treatment from private doc-
Private health insurance is available in Italy
tors or hospitals at NHS expense. A recent
but is not widespread. Where offered, it is usu-
court decision allows patients whose life
ally provided by employers. About 10 percent
would be endangered by delays under the
of Italians have private health insurance, below
NHS to seek treatment in private hospitals
the percentage in most OECD countries.
even without prior permission from the
According to the insurance industry, this is
regional government.
partly because it is not possible to opt out of
Italy has imposed a relatively strict drug
the National Health System and because
formulary as well as price controls, and has
health insurance premiums are not tax
thereby succeeded in reducing pharmaceuti-
deductible.99 Private health insurance allows
cal spending, long considered a problem for
the Italian health care system. In 2006,
free choice of doctors, including specialists,
Italian drug prices fell (or were pushed) 5 per-
and treatment in private hospitals. Even with-
cent, even as drug prices rose in the United
out private insurance, however, many Italians
States and much of the rest of the world.
use private health resources (and presumably
However, the savings came at a cost: the
pay out of pocket). Estimates suggest that as
introduction of many of the newest and
much as 35 percent of the population uses at
least some private health services.100
most innovative drugs was blocked.107
Although Italy spends a relatively low per-
Conditions in public hospitals are consid-
13