Types of Health Systems

There are about 200 countries on the planet, only 40 of which adopt a formal system. Below is a list of the four different types of health care models.1

BEVERIDGE MODEL

Named after William Beveridge, the U.K. social reformer who helped create the National Health System2
Health care both paid for and provided by the government
Free at point of service
Financed through taxation – sometimes dedicated taxation, sometimes general tax revenues, and sometimes both
Examples: United Kingdom, New Zealand, Spain, U.S. Veterans Health Administration

BISMARCK MODEL

Named after Prussian Chancellor Bismarck
Health care paid for by non-profit insurance firms and provided by public and private actors
Financed by employees and employers, generally through payroll deductions; often complemented by general tax revenues
Examples: Germany, France, Netherlands, Japan, Switzerland

NATIONAL HEALTH INSURANCE OR SINGLE-PAYER MODEL

Health care paid for by government-run insurance programs and provided by public and private actors
Financed through taxation – sometimes dedicated taxation, sometimes general revenues, and sometimes both
Examples: Canada (at a provincial level), South Korea, U.S. Medicare

OUT-OF-POCKET

Health care paid for by consumers to public and private care providers
Little to no insurance coverage
This model is used by most low- and middle-income countries
Examples: Chad, India, Rwanda

References

1. Physicians for a National Health Program. Health Care Systems - Four Basic Models. Health Care Systems - Four Basic Models | Physicians for a National Health Program. https://www.pnhp.org/single_payer_resources/health_care_systems_four_bas....
2. Encyclopedia Britannica, inc. (2013, October 8). National Health Service. https://www.britannica.com/topic/National-Health-Service.

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