HEALTH CARE FUNDING SYSTEMS Name Tutor Course College Date Introduction Health care system involves the organization of institutions, people and the resources that are used to ensure the best delivery of health care services to a particular population the society…
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Some of the ways in which health care systems are funded include taxation methods, use of social insurance, out of pocket payments, private insurances and charity donations. The low income countries are still using the traditional funding methods although some are using non-traditional methods like public-private partnerships and the micro-contributions. All these methods have similar and different approaches. They also have different advantages and weaknesses. This paper will place emphasis on similarities and differences on the taxation approach and the social health insurance method of health care funding system. These two methods have different approaches in funding health care systems. They have many advantages that make them widely used approaches in health care system funding. Despite these positive effects, they also have some weaknesses that render them inappropriate methods (Irvine, 2002, p.24). Main body Social health insurance is one of the approaches in health care funding. This method has its origin in Germany where it became effective in nineteenth century. When this method was first used, the government did not have any intervention (Whitaker, 1999, pp.37). Social health insurance has different features and different ways in which it operates. In social health insurance, the people involved are required to pay regular contribution from their monthly incomes. These regular contributions are called sickness funds. They are used as the major body of management in social health insurance (Whitaker, 1999, pp.38). There are other features that are associated with social health insurance funds although these features are not applicable in all counties. In some countries, social health insurance has been made compulsory for the larger population. In the past, this insurance also covered employees from the bigger firms but currently, it has been used to cover employees from smaller firms and those who are self-employed. This social health insurance has been made mandatory in many countries but Netherlands exempts those who have high incomes (Whitaker, 1999, pp.41). In some countries, the government pays sickness funds for those who are not employed. In these countries, some people depend on the government support only since they cannot raise money to pay social health insurance. This ensures that all people are able to access health services in the country. Furthermore, both employees and the employers are required to make contributions on the sickness funds. They are given full responsibilities in controlling use of the funds (Irvine, 2002, p.41). Different countries in Europe have different approaches to the social health insurance mainly in terms of the people who are supposed to be insured. In the past, social health insurance only focused on the working population in the society. The coverage of the insurance later expanded to the non-working members of the society. Some of the countries that have managed to cover the all population with this social health insurance include Swaziland, France and Belgium (Wilkinson, 2006, p.53). Health care systems can also be financed through taxation. This approach is referred to as taxation systems in the health care. In this health financial system, expenditure is catered through the tax payments. These taxes are paid by people who are ...
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