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The Beveridge Model

***Summary of the following section is in bold
Overview

           The Beveridge healthcare model is funded by taxation rather than premiums like in the Bismarck model and is fully controlled by the government. Insurance providers in the government network have to follow government mandates as to costs and services, but anyone in need of care can receive it anytime without having to pay for that specific service, so they don’t get a medical bill. This means that everyone can access healthcare without paying directly, but they pay taxes to fund everyone’s healthcare and these funds are distributed by the government. Supplemental insurance covering other services can be bought separately, but the tax for the basic coverage plan is still imposed on everyone. People meeting certain criteria (ie. poverty, disability, chronic illness) don’t have to pay the tax, but they can access the same quality and range of healthcare as others. The only issue of the model lies in people abusing the services offered.

 

           "Developed in 1948, by Sir William Beveridge in the United Kingdom, the Beveridge model is often centralized through the establishment of a national health service. Or, in the case of the UK, the National Health Service. 

           Essentially, the government acts as the single-payer, removing all competition in the market to keep costs low and standardize benefits. As the single-payer, the national health service controls what "in-network" providers can do and what they can charge. 

           Funded by taxes, there are no out-of-pocket fees for patients or any cost-sharing. Everyone who is a tax-paying citizen is guaranteed the same access to care, and nobody will ever receive a medical bill. 

           One criticism of the Beveridge model is its potential risk of overutilization. Without restrictions, free access could potentially allow patients to demand healthcare services that are unnecessary or wasteful. The result would be rising costs and higher taxes. However, that's why many of these systems have regulations in place to manage usage and proactive prevention campaigns. 

           There is also criticism around funding during a state of national emergency. Whether it's a war or a health crisis, a government's ability to provide healthcare could be at risk as spending increases or public revenue decreases."

Global Healthcare: 4 Major National Models and How They Work 

Benefits

  • Every citizen has access to health care because of the universal coverage.

  • The government is responsible for the quality of care, and this may be beneficial if the government keeps the cost of health care low.

  • Citizens do not receive and are not responsible for medical bills or co-pay.

International Healthcare Systems Part 1: The Beveridge Model

Faults

  • Every citizen must pay high taxes regardless of their use of health care.

  • The government is responsible for the quality of care, and this may be harmful if the government restricts the services patients are allowed access to.

  • There are long waiting lists and lines to receive care, especially for those with non-emergency situations.

International Healthcare Systems Part 1: The Beveridge Model

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