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Publicly funded medicine is a level of medical service that is paid wholly or in majority part by public funds ( taxes or quasi-taxes). Publicly funded medicine is often referred to as "socialized medicine" by its opponents, whereas supporters of this approach tend to use the terms "universal healthcare", "single payer healthcare", or National Health Services. It is seen as a key part of a welfare state (see Welfare State for an interpretation in UK terms).

Publicly funded medicine may be administered and provided by the government, but in some systems that is not an obligation: there exist systems where medicine is publicly funded, yet most health providers are private entities. The organization providing public health insurance is not necessarily a public administration, and its budget may be isolated from the main state budget. Likewise, some systems do not necessarily provide universal healthcare, nor restrict coverage to public health facilities.

Proponents of publicly funded medicine cite several advantages: universal access to high quality care, equality in matters of life and death, the reduction of contractual paperwork, and the creation of uniform standards of care. One important difference is the reduction in the percentage of societal resources devoted to medical care (in other words public systems cost less than private systems).

1 Varieties of public systems

The majority of industrial societies have publicly funded health systems that cover the great majority of the population. For some examples, see the British, medicare (Canada) and Medicare (Australia). The role of the government in healthcare provision is however a source of continued debate where opinions diverge sharply.

Even among countries that have publicly funded medicine, different countries have different approaches to the funding and provision of medical services. Some areas of difference are whether the system will be funded from general government revenues (e.g. Italy, Canada) or through a government social security system ( France, Japan, Germany) on a separate budget and funded with special separate taxes. Another difference is how much of the cost of care will be paid for by government or social security system, in Canada all hospital care is paid for by the government while in Japan patients must pay 10 to 30% of the cost of a hospital stay. What will be covered by the public system is also important; for instance, the Belgian government pays the bulk of the fees for dental and eye care, while the Australian government covers neither.

2 Public systems around the world





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