Question

1. In your view, what are the strengths and limitations of having multiple payers versus a single payer? 2 Out of these two systems (single payer and multiple payers) which health system model would you recommend to low and middle income countries, and why?

Answer 1

1. Like everything in this world has its pros and cons, single payer system and multiple payer system has its advantages and disadvantages .

# Single payer system

Advantages :-

- administrative cost is less and it's progressive

- redistribution of wealth and stable risk pool

- Monopsony bargaining power in purchasing health services

- Government has high degree of control on expenditure

Disadvantages :-

- Less competition and innovation

- Not all services are available

- Regulatory capture and allocated financial resources are used which are affected by political climate.

# Multiple payer system

Advantages :-

- More competition and more innovation hence, cost saving for insurers and employers

- Greater ability to meet diverse preferences of beneficiaries, hence people can choose their services according to their income .

Disadvantages :-

- High administrative cost

- small redistribution of wealth

- small and unstable risk pool

- weak purchasing power

- Government has less control over health expenditure.

2. Out of these two payer system I would recommend multiple payer system for the low and middle income payers because the most important feature of the ability to select health care services from diverse choices according to their financial background is provided by the multiple payer system only and also it's most effective in countries with weak taxation system .