New Zealand Introduced A Tax Based Financing Health Care System

1685 Words Aug 13th, 2015 7 Pages
New Zealand introduced a tax-based financing health care system in 1947 (Cumming et al, 2013) and Singapore had a similar system after its independence in 1965 (Haseltine, 2013). Due to the increasing pressure on public spending in financing health care, both countries have introduced health care reforms since the 1970s to ease the pressure (Li, 2006). New Zealand has experienced a series of reforms which represented a major restructuring of the health system. The reforms have led to the creation of a devolved health care system that uses available health care resources efficiently (Cumming et al, 2013). In contrast, the Singaporean government overhauled the whole system by removing the tax-based financing system and adopted the medical savings account system called the Medisave in 1984 (Haseltine, 2013). Under the Medisave system, health care is mainly funded by private financing, which requires each person to make savings in an individual account just for health care spending.

In both countries, health related policies are formulated by the Ministry of Health. It also supports the government in setting the health policy agenda, service requirements for the health system, and the annual publicly funded health budget. In New Zealand, the National Health Board has been established to provide advises to the Minister of Health and its responsibilities are for funding, monitoring and planning of the District Health Boards, stronger alignment of services, and supporting the…
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