Page 45 - Ebook health insurance IC27

Sashi Publications

Questions and Answers

Q1. What are the main sources of funds for paying health care costs around
the world?

Ans. The main sources of funds for paying health care costs are :
(i) General Government revenues or tax funded systems - In tax funded systems,

the population contributes indirectly via taxes, which then form part of the general
revenues and are used in the provisioning of healthcare.

(ii) Employment based health insurance or other forms of social health
insurance - In this system, the employees and employers contributes, with or
without any additional support The coverage usually also includes the dependents
of the employees. They can be however, of diverse forms. They could be in the
form of a mandatory, earmarked, payroll tax, or a voluntary, tax deductible health
plan.

(iii) Private health insurance or commercial health insurance - They are usually
commercial profit making ventures, though some are also of the non profit or
charitable type , and

(iv) Out of pocket payments by households - Contributions made by individuals
out of their savings and daily expenses.

Q2. Trace out the internal experience in health insurance schemes in major

countries.

Ans. As per WHO , in 2010, the composition of World Health Expenditure is as

follows :

General Government Expenditure : 35 %

Social Insurance : 25 %

Private Insurance : 18 %

Website : www.bimabazaar.com, PH: 033 22184184/40078428 49