ABSTRACT
This chapter explores the inherent strengths and weaknesses of the tax and social health insurance mechanisms against a set of criteria selected in line with international policy goals for health care financing. Health care can be financed from a number of different sources including private out-of-pocket payments, and voluntary health insurance premiums, or public sources including taxation, and social health insurance contributions. Priorities might include allocating resources in line with need, sharing the burden of payment for health care fairly across the population, achieving appropriate levels of preventive health measures and other objectives. Financing mechanisms for health care need to be acceptable and transparent. Resistance to a payment mechanism could lead to evasion which in turn gives rise to unpredictable and unstable resources. A financing mechanism is more transparent where there is a clear link between the packages of services that are available and the funding of these services.
