| Nowadays, with the widespread of diseases such as | | | | certain disabled individuals (Medicaid). Despite this, |
| HIV and cancer as well as the outbreak of epidemics | | | | medical cover in the USA is very expensive and it is |
| and pandemics like swine flu, avian flu and Severe | | | | not uncommon for excessive health bills to be the |
| Acute Respiratory Syndrome (also known as SARS), | | | | source of financial problems, with 62% of all |
| health cover has become a burning issue throughout | | | | bankruptcies filled in 2007 being linked to medical |
| the world. However, each country has its own | | | | expenses. |
| healthcare system; therefore, health cover and health | | | | In the Netherlands, the healthcare system (het |
| insurance differ immensely from one country to | | | | ziekenfonds) is very different to what it is in the UK |
| another. | | | | and the US. Both the state and the country's residents |
| In the UK, it is the National Health Service (NHS) that | | | | finance the healthcare system. This system has been |
| was founded in 1948 runs the healthcare system. It is a | | | | established in order to avoid both moral hazard and |
| publicly funded healthcare service that provides health | | | | adverse selection. Moral hazard is avoided by |
| cover to everyone normally residing in the United | | | | stipulating that health insurance companies must |
| Kingdom. However, the NHS is not a health insurance | | | | provide at least one policy that meets the minimum |
| system because, no premiums are collected, costs of | | | | government set minimum level of health cover. All adult |
| treatment are not charged at patient level and costs | | | | residents are under the obligation to purchase this type |
| are not pre-paid from a pool. Nevertheless, the NHS | | | | of health insurance. This type of medical cover is |
| still covers 86% of all health expenditures. Private | | | | funded by a pool that works on the principal of |
| health insurance providers cover the remaining 14% of | | | | equalization. A regulator collects salary-based |
| all health expenses. What's more, despite, most | | | | contributions and then redistributes to each healthcare |
| healthcare expenses being covered by the NHS, it is | | | | provider. Equalization funds 50% of the healthcare |
| not uncomon for people to opt for complementary | | | | system with the government contributing an extra 5% |
| private health cover. | | | | and the remaining 45% being financed by individual |
| In the USA, the healthcare system heavilly relies on | | | | premiums. High-risk individuals will receive more from |
| private medical insurance. 58% of all Americans | | | | the pool in order to make attractive for insurance |
| subscribe to a form of private health cover. However, | | | | companies to cover; and consequently contributing to |
| there is are also public health insurance programs | | | | avoid any kind of adverse selection. |
| which provide health cover to all senior citizens and | | | | |