The Bismarck model utilses an insurance system where employers and employees pay statutory sickness funds for standard health cover. However you are still able to opt out of the standard insurance in favor of private insurance.
Bismarck countries tend to have a majority of private hospitals and privately employed hospital staff. Despite this the health insurance plans are usually not designed with the purpose to make profit and in many countries where the Bismarck model is employed regulations allow governments to keep a firm hold on the purse strings.
Who was Bismarck?
Otto von Bismarck is famous for his part in the unification of Germany in the late nineteenth century. After the Franco-Prussian War ended in 1971, Bismarck became the first chancellor of the German empire and remained so until 1890.
Since the beginning of his political career Bismarck had gained the reputation of being an ultra-conservative royalist. He became concerned with the growth of the socialist movement and to prevent socialism spreading, as well as part of his strategy to build up the patriotism of ordinary Germans, he introduced employee health insurance and old-age pensions, thus laying the foundations for a modern welfare state.
Which countries implement this model?
As well as its founding country Germany, today the Bismarck model is employed in many European countries, for instance, Belgium, France, the Netherlands and Switzerland. However the Bismarck model is also found outside Europe in countries such as Japan.
References:
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Emilia Chen, Oxford