Question

What are new ways we can fund healthcare systems in the future.

Answer 1

There are three key forces driving significant healthcare system change were people, cost and technology.

In 2012-13 (the latest figures available from the AIHW), 68% of health expenditure was funded by governments. Some 18% was funded by individuals through out-of-pocket payments, a further 8% by private health insurers and 6% by other sources, mainly injury compensation insurers like workers’ compensation and motor injury insurers.

Private health insurance data for private hospitals, dental care and other extras treatments, and out-of-pocket health expenditure are the new ways for funding healthcare systems.

Other factors are government revenue, income tax and GST make up half of total revenue and are the least ambiguous to allocate by age. Individual out-of-pocket funding is, by definition, the same as out-of-pocket expenditure is the more prior way to fund the health system as many working age people bear most of the cost of health care despite using less health services.

Private health insurance by the working age group and government revenue as subsidy for poor people drive the funding for health system.

Eg. CVS health, United Health group, Cardinal Health are private health insurance and Obama care for government subsidy