About Social Health Insurance

Social health insurance is a type of insurance that originated in Europe that coves health care costs from funds collected from individuals, employers and government subsidies. It is popularly known as the "Bismarck Model," according to the World Health Organization.

Government

• Social health insurance is formed from government legislation requiring regular contributions from its members, reports the Health Insurance website.

Developing Countries

• The University of California at Berkeley reports social health insurance is a popular option in developing countries where health insurance options are limited.

Costs

• Within a social health insurance system, costs of hospital and inpatient care are underwritten by the government organized fund, according to the World Health Organization.

Funds

• The Health Insurance website reports that a general sickness fund is created from the contributions of its members with all members receiving common benefits despite of the levels of payment made into the scheme.

Payments

• Within a social health insurance system payments are compulsory for its members with no option for opting out of the system, while insired people cannot be excluded from treatment, according to Health Insurance.