Question

There are two basic approaches to providing universal health insurance in Europe. One is commonly referred to as the Bismarck model and the other is the Beveridge model. Describe the origins of each. Explain how each raises money and how each determines who it will cover. Assess the strengths and weaknesses of each model in terms of administrative costs and equity. Which of these models is closest to the one Canada’s medicare system follows?

Answer 1

SOLUTION :

Many developing countries are experimenting with compulsory health insurance models Although large informal sectors make these schemes hard to organise, they decrease out-of-pocket spending by extending access to health services and preventive services. This is important in places with high prevalence of infectious diseases such as HIV, malaria, and tuberculosis. In the US, Medicare for the elderly and Medicaid for the poor have extended coverage to subgroups of the population.

Bismarck’s original intentions were not genuinely social. His health insurance was a reluctant reaction to upheavals among the working class in the wake of the Industrial Revolution, and a way to secure a political advantage against the Socialist Worker’s Party in the Reichstag, Germany’s parliament. Bismarck’s clever design ensured that the imperial budget was not affected. It was jointly financed by employers (one third) and employees (two thirds).

The scheme served as a blueprint for others. Even today, many health insurance systems are based on Bismarck’s health insurance. But although researchers agree that this was an important milestone for the development of social insurance systems, they don’t agree about how successful it was.

An other side This access to healthcare is not considered as contingent on employment, but rather as an intrinsic part of citizenship. Public authorities fund this system through taxes, rather than through social contributions.Today, the Beveridge Model is applied by Cuba, Denmark, Finland, Great Britain, Hong Kong, Italy, Norway, Spain, and Sweden. With the exception of Cuba, all are capitalist democracies that have decided to remove the profit motive from health care on the grounds that it compromises equity and efficiency.

And finally we conclude that canadian government use Bismarck model for her countries health syatem.