Bismarck Model

The Bismarck Model (pronunciation: biz-mark model) is a health care system model that uses an insurance system — the insurers are called "sickness funds" — which must cover every citizen, and they are funded by employers and employees rather than by the government. The model is named after Otto von Bismarck, who invented the welfare state as part of the unification of Germany in the 19th century.

Etymology

The term "Bismarck Model" is derived from the name of Otto von Bismarck, the first Chancellor of the German Empire. Bismarck introduced the model as part of his social legislation, which included the Health Insurance Bill of 1883, Accident Insurance Bill of 1884, and Old Age and Disability Insurance Bill of 1889.

Related Terms

Healthcare system: The organization of people, institutions, and resources to deliver health care services to meet the health needs of target populations.
Sickness fund: An insurance policy designed to cover the costs of medical care required by the insured due to illness.
Welfare state: A type of government in which the state protects and promotes the economic and social well-being of its citizens, based upon the principles of equal opportunity, equitable distribution of wealth, and public responsibility for citizens unable to avail themselves of the minimal provisions for a good life.
Otto von Bismarck: A conservative German statesman who masterminded the unification of Germany in 1871 and served as its first chancellor until 1890, implementing policies that modernized the nation.