National health insurance (NHI), also known as statutory health insurance, is a health insurance system that protects a national population from the costs of health care. It could be run by the government, the private sector, or a combination of the two. The funding mechanisms differ depending on the program and country. National or statutory health insurance is not synonymous with government-run or -financed health care, but is typically established by national legislation.
National health insurance is a system in which a government provides or mandates health insurance coverage for its citizens. This can take different forms, but the basic idea is that the government creates a pool of funds that can be used to pay for healthcare services for its citizens.
Purpose
The aim of national health insurance is to ensure that everyone has access to healthcare services, regardless of their ability to pay. This can help to reduce healthcare disparities and improve overall health outcomes.
Some countries have fully implemented national health insurance programs, while others have a mix of public and private insurance systems. The exact design and implementation of national health insurance programs can vary widely depending on the country and its specific healthcare needs and resources.
Contributions to the system in some countries, such as Australia’s Medicare system, the United Kingdom’s National Health Service, and South Korea’s National Health Insurance Service, are made through general taxation and thus are not optional, even though use of the health system it finances is. In practice, the vast majority of people who pay for NHI will enroll. Where an NHI involves a choice of multiple insurance funds, the rates of contributions may vary and the person has to choose which insurance fund to belong to.
Advantages
Some of the advantages of national health insurance include increased access to healthcare services, improved health outcomes, and reduced financial burden on individuals and families. However, there may also be disadvantages such as increased taxes or other costs to fund the program and potential limitations on choice and quality of healthcare providers.
NHI would be a large-scale, all-encompassing redistribution of health-care services. Because no aspect of the health care sector would be unaffected, its potential implementation galvanizes every stakeholder to take a strong pro or con stance.
