This book is written with an acute awareness of the need for new
insight to ensure (1) universal protection in basic healthcare; (2)
providing choice; (3) efficient production and consumption of
healthcare services; (4) financial sustainability of the healthcare
system. Defining the public interest as the welfare of the
"representative individual" with no vested interest who imagines
himself to have equal chance of being anyone in society, this book
explores alternative ways of finance and delivery, the optimal
interface between the public healthcare sector and the private
healthcare sector, and that between public insurance and private
insurance. The book includes a theoretical but non-technical
section that distinguishes between the stock of health and
functional health, proposes a utility maximizing/behavioural
framework to explain behaviour and the role of health policy and
investigates the nature of risk and alternative insurance
mechanisms. The book illustrates with a number of country studies,
covering a large range of healthcare systems from the American and
the European systems to various Asian systems as well as those of
Australia and New Zealand. The survey of country experiences
reinforces the theoretical conclusions about the role of the public
healthcare sector and social insurance and that of the private
market. The book highlights the importance of and the workability
of "pricing right" and "capping right": pricing standard or basic
healthcare services at the right price can contain both demand-side
and supply-side moral hazard and lead to more efficient production
and consumption of healthcare services; capping annual eligible
healthcare expenses will provide effective protection against
financial risks. The proposal of lifetime healthcare supplement
offers greater choice. Private caregivers and insurers supplement
the public healthcare system by offering more choices and premium
services, as well as additional protection.
General
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