Single-Payer System: A Case Study

For instance, the financing element in health care system is the ability to collect revenue and management of revenue collection, typically through the pooling of resources to ensure that risk of having to pay for health care services is shared across population rather than individuals. Most health care systems can divided into one of two different financing arrangements: some have a single health insurance pool (single-payer) while others use multiple health insurance pools (multi-payer) (Hussey & Anderson, 2003). Single-payer systems can be decentralised, with separate health insurance pools for different geographic regions such as provinces or states. Since all beneficiaries within each region are covered by a single regional insurance pool. The single-payer systems can be operated by government or the private sector with regulations and oversight provided by the government. Most multi-payer systems allow for some beneficiary choice of insurer, however, the there have varying levels of private sector and government involvement. For example, the Netherlands mandates all individuals the work or live there to purchase a basic government-defined benefit package from a private insurance company after major reform in 2006. On the other end, Germany has several government-regulated, not-for-profit …show more content…
Single-payer systems generally offer greater government control over the provision of care, since the insurance pool is able to exercise monopsony power within the region over the prices paid for services.These systems tend to emphasise equity and do not have to confront risk selection in insurance. On the other hand, Multi-payer systems generally allow for consumer choice of insurer, which can drive innovation and competition, these systems tend to emphases on efficiency and choice. Multi-payer systems could also have the same monopsony paid as a single-payer system if they negotiate