Health Care Financing: the Beveridge Model - Research Paper Example

Health Care Financing Paper Health Care Financing Paper With the advancement of medical science developed countries and some of the developing countries have designed basic health care system of their citizens. These health care systems can be devised into four basic models and they can be listed as per the following. Each model has its own strengths and weaknesses that can be studied from the view point of physicians, patients and the society at large. The Beveridge Model The model is named after William Beveridge, a social reformer who was instrumental in creating Britains National Health Service. The remarkable feature of this system is that it is designed by Government of UK through tax payments. Spain, New Zealand, Australia, Sweden, Hong Kong, and most of the Scandinavians countries follow this model of health care system. Though Beveridge was the architect of this system; Nye Beven was the one who really made it. Beveridge Model from Physician’s Perspective 1. Doctors or Physicians are paid by a single source that is the government. 2. Doctors do not get motivated for there is no chance of private practice to enhance their income remarkably. 3. In the long, run doctors and surgeons do not get motivated for the innovation and improvement in the existing practices for there is hardly any chance of extra reward for the new efforts put by them. Beveridge Model from Patient’s Perspective The biggest benefit is that the patients are always relaxed for they get health treatment through government funding and they have not to manage the expenses from their own pockets. The advantage of this model is that each and every citizen gets medical treatment free regardless of their economic status and kind of illness. Patients need not pay hefty insurance premiums for the various health issue coverage as happens in the countries like US. The flip side is that there being no open market competition people complain of poor quality care and government regulating treatment parameters, often patients are found giving unsatisfactory remarks. Beveridge Model from the View Point of Society at Large Due to government funding, society has equal standards of health across all the sections of society regardless of their creed, caste, and culture. This brings equality amongst nation’s citizen at least in this respect. However, due to hefty cost of health care for its citizens the government has to enforce huge taxation. UK is currently having sales tax to the tune of 17 percent which is fairly high compared to other countries. It is said that often patients have to wait for a long treatment time, especially for surgical treatment giving them the gross inconvenience and discomfort. For that reason, often patients have been found visiting other countries for emergency operations. (Hamilton, Dan 2009) The Bismarck Model Otto von Bismarck was the person who invented this model. This is the system largely followed in Germany and US for providing health care to the citizens. It is a type of insurance system funded jointly by employers and employees. Employees’ contributions are deducted from their payrolls. This system of health care is popular besides Germany in France, Belgium, Japan, Netherlands, and Switzerland. Health care facilities are provided through private hospitals. Bismarck Model from Physician’s Perspective Unlike Beveridge Model, in Bismarck system doctors and hospitals operate privately outside the direct control of government. They enjoy more business freedom and thus the possibility of innovation in new procedures and processes are higher in this model. Bismarck Model from Patient’s Perspective In this model, patient is insured for medical care they have not to borne the cost fully. Since they tend to get treatment in privately run clinics and hospitals the quality standards are high and often they get best care and go fully satisfied after the treatment. Bismarck Model from the View Point of Society at Large The government is not burdened in Bismarck Model; they need not levy any extra burden on the citizens by way of taxes. Citizens can cover their health needs based on the different insurance plans offered by the operators. (Hamilton, Dan 2009) The National Health Insurance (NHI) Model This is an amalgamation of Bismarck and Beveridge Model. The private doctors and hospitals provide the treatment but the payment comes from a government insurance schemes that every citizen needs to pay into. These are basically not-for-profit kind of insurance programmes as opposed to American style for-profit insurance schemes. Canada is a classic example of NHI model. The countries like South Korea and Taiwan have also adopted this model for providing health care to their citizens. The National Health Insurance (NHI) Model from Physician’s Perspective Hospital and physician receive their fees from the state insurers. Here doctors and hospitals cannot get hefty fees for their treatment so in a way they do not enjoy that much financial motivation that their counterparts in US enjoy. The National Health Insurance (NHI) Model from Patient’s Perspective Since it is funded by the state insurance companies, the patient need not bear the treatment charges though everybody needs to contribute in insurance plans as devised by the government time to time. The patient is assured of medical treatment choosing their clinic, hospital and the doctor. The National Health Insurance (NHI) Model from the View Point of Society at Large The biggest benefit of NHI is that each and every citizen can avail the treatment regardless of his or her ability to pay. The state being a biggest insurer to fund the program has enormous capacity to bargain the drug prices from large pharmaceutical companies. The collective benefit goes to the citizen by way of reduced treatment cost and thus lower state insurance cost. The cost of drug in Canada is so low that people from US get the prescription drug online from Canada. The Out-of-Pocket Model Only developed or industrialized countries enjoy medical treatment or health care systems. There are many less developed and poor countries that do not have any proper health care system. In most of these countries, the affordability is a rule. Those who are rich and can pay get medical care and those who cannot afford are destined to remain without treatment. Essentially, this is a market driven model. Conclusion In the US, almost 15 percent of the population has no health insurance and for them the treatment is available only if they are ready to pay out-of-pocket or they are so sick that are required to be treated at public hospital in an emergency ward. U.S. is a fitting example where all above mentioned health care systems are in operation that serves all classes of people. Private insurers are available for rich class of people and schemes like Medicare work for the aged above 65 years of age. The working class enjoys health care like Germany through their employer’s insurance schemes. Last year in March 2010, the Obama Government doing health care reform enacted a law called the Patient Protection and Affordable Care Act. The bill will help insure and facilitate medical coverage to 32 million uninsured Americans. By 2014, as per the provision of the bill, health insurance is mandatory for everyone; they need to buy insurance either from the government, or employers or on their own. (Jackson, Stephen 2010) Besides, Medicaid health care system has been extended to about 16 million people who are currently not insured. All American citizens who earn below 133 percent of poverty level will get benefit under the Medicaid scheme and this will be solely on the basis of income. (Minor, Lloyd B 2010) References: 1. Hamilton, Dan 2009. The Beveridge Model of Health Care. Online at http://www.fsutorch.com/2009/10/14/arts-entertainment/the-beveridge-model-of-health-care/ [Accessed on 4/6/2011] 2. Hamilton, Dan 2009. Health Care: The Bismarck Model. Online at http://www.fsutorch.com/2009/10/14/arts-entertainment/the-beveridge-model-of-health-care/ [Accessed on 4/6/2011] 3. Health Care Systems–The Four Basic Models. Online at http://www.pbs.org/wgbh/pages/frontline/sickaroundtheworld/countries/models.html [Accessed on 4/6/2011] 4. Jackson, Stephen 2010. Ferris Reacts to Health Care Reform. Online at http://www.fsutorch.com/2010/03/24/news/ferris-reacts-to-health-care-reform/ [Accessed on 4/6/2011] 5. Minor, Lloyd B 2010. Bismarck, Beveridge and “The Blues”. Online at http://web.jhu.edu/bin/w/i/101014%20Minor%20Speech.pdf [Accessed on 4/6/2011] Read More