HEALTH FINANCING SYSTEMS

Tax Based Health Financing System

Tax Based Health Financing System

Introduction

The mankind has reached to the most civilized age where it has constructed different types of structure for government and economies. The citizens of every state follow the rules and regulations which are defined and designed by their government. In every country, the governments used to collects funds to provide different services to its citizens such as law and order situation, educational services, jobs and medication. The researchers and theorists claimed that the medical services are very important because it keeps the citizens of the state in good health. It is also a fact that the medical services are very often very expensive because of their nature. The medical services require doctors, specialists, surgeons, nursing and other helpers as manpower along with the requirements of medicines. In today's world, the field of medication does not only mean doctor and medicines but it also involves high tech machinery and instruments which in turn make the medical services very expensive. The research also showed that it is not possible for every member of the state to fulfil his or her own medical expenses because the medical expenses are very high in amount. The medical expenses are not a routine expense. These two aforementioned points, crucial for healthy nation and unbearable medical expenses, provide impetus to compel government to take the responsibility of the health of its citizens on its own shoulders. Therefore, the governments across the globe have put all of their efforts in developing an effective framework for the health services. There are different perspectives of the health services which need to be focus for developing an effective and efficient frame work such as policies, structure and financing system (Borghi et.al, 2006, pp. 1460).

The report will focus on health financing systems. In general, there are two types of health financing systems which are taxation-based financing and social health insurance. The researchers and theorists claimed that the governments of different countries have moved from the social health insurance to tax based financing health system. The main reason behind this claim is that the tax based health financing system is relatively les expenses as compared to social health insurance. The researchers also claimed that the tax based health financing system is also more equitable and more coherent. The report will highlights key facts relating to the effectiveness of the tax based health financing system and the competitive advantage of this system on the social health insurance. The report will also provide theoretical framework to demonstrate the supremacy of tax based health financing system. The report will also present country examples as evidence for the viability, effectiveness and acceptance of the tax based health financing system.

Discussion

Taxation Based Health Financing System

Health systems that are mainly financed through taxes are called National health services. National health services systems typically provide healthcare to anyone resident in a country for free at the point of delivery. National health services aim at establishing comprehensive access to free health ...