TRENDS IN THE DEVELOPMENT OF HEALTH EXPENDITURE AND THE CHOICE OF A FINANCING SYSTEM: COMPARISON OF BEVERIDGE AND BISMARCK MODELS

A government-run national health service (the Beveridge model) can provide care for all at a reasonable cost but cannot avoid the dangers of poor quality. An insurance-based system (the Bismarck model) can achieve high quality but cannot ensure care for all at an affordable cost. The best chance of achieving a reliable financial base for health services is to use a combination of both these approaches.