Healthcare financing
Healthcare Financing is a term that refers to the various methods by which healthcare services are paid for. It includes both the sources of funds and the mechanisms for collecting and pooling these funds.
Pronunciation
Healthcare Financing: /ˈhɛlθˌkɛər ˈfaɪnænsɪŋ/
Etymology
The term "Healthcare Financing" is derived from two words: "healthcare", which is a compound word from "health" and "care", and "financing", which comes from the verb "finance". "Health" comes from the Old English "hælþ", meaning "wholeness, a being whole, sound or well". "Care" comes from the Old English "carian", meaning "be anxious, grieve; to feel concern or interest". "Finance" comes from the Middle French "finance", meaning "settlement, payment".
Related Terms
- Health Insurance: A type of insurance coverage that pays for medical and surgical expenses incurred by the insured.
- Out-of-pocket expenses: Costs that individuals pay themselves because they are not covered by health insurance.
- Public Health Expenditure: The total expenditure on health from government and statutory health insurance funds.
- Private Health Expenditure: The total expenditure on health from private sources, such as private health insurance, non-profit institutions and households.
- Universal Health Coverage: A situation where all individuals and communities receive the health services they need without suffering financial hardship.
Healthcare Financing Models
There are three main models of healthcare financing: the Beveridge Model, the Bismarck Model, and the National Health Insurance Model. Each model has its own unique characteristics and is used in different countries around the world.
Beveridge Model
Named after William Beveridge, the social reformer who designed Britain’s National Health Service. In this system, healthcare is provided and financed by the government through tax payments.
Bismarck Model
Named for the Prussian Chancellor Otto von Bismarck, who invented the welfare state as part of the unification of Germany in the 19th century. It uses an insurance system and is usually financed jointly by employers and employees through payroll deduction.
National Health Insurance Model
This system has elements of both Beveridge and Bismarck. It uses private-sector providers, but payment comes from a government-run insurance program that every citizen pays into.
See Also
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