What role does health financing play in achieving UHC?

Health financing plays a crucial role in achieving Universal Health Coverage (UHC) by ensuring that funds are allocated efficiently to provide necessary health services to everyone without causing financial hardship. This involves generating sufficient funds through various means, including taxation, insurance premiums, and other financial mechanisms, and strategically directing these resources to essential health services. Efficient allocation means that resources are used where they are most needed, prioritizing services that will have the greatest impact on public health and ensuring equitable access for all segments of the population.

This focus on efficient funding distribution is vital in helping to mitigate barriers to care, such as high out-of-pocket costs or unequal access for disadvantaged groups. It also supports the sustainability of health systems by enabling the provision of quality services and preventing financial risk caused by health-related expenses. In this way, health financing directly supports the objectives of UHC, which aims to provide comprehensive healthcare coverage to all individuals.