Exorbitant medical bills are pushing over 100 million people into poverty every year. In some countries, 5 percent of the population is forced into poverty every year because they have to pay for health services.
The findings are from the World Health Organization's World Health Report 2010 which has just been released.
The WHO report says that in countries like India people who pay for their health care services suffer "catastrophic costs." While millions suffer and die because they do not have money to pay for health care, others suffer because they end up paying through their noses.
Between 20 percent and 40 percent of all health expenditures is wasted due to inefficiency, according to the report, with overpaying being described as a form of waste. In some countries medicine prices are up to 67 times more than the international average price, grossly affecting expenditures for other health services.
Among other things, the report puts maternal mortality in perspective. It says that in countries where women account for 20 percent of the affluent in society, they are 20 times more likely to have birth of their babies attended by skilled health worker than her poor counterparts.
This year's report was commissioned based on need, expressed by rich and poor countries alike, for practical guidance on how to improve the financing of health care. It provides governments practical guidance on ways to finance health care. the report was presented to a ministerial conference on health financing in Germany on Monday.
Dr Margaret Chan, Director-General of WHO, said during the release, "The need for guidance in this area has become all the more pressing at a time of global economic downturn and rising health care costs. In every region of the world, the costs of health care are going up as populations age, chronic diseases increase, and new and more expensive treatments become available."
World Health Report 2010 highlights three key areas where change can happen: by raising more funds for health, raising money more fairly, and spending it more efficiently.