The battle for ‘health supremacy’ as it has come to be known could be the answer to ensuring a fairer NHS system but critics are saying that switching to a form of health insurance does not necessarily guarantee cheaper premiums.

What the think-tank report highlighted was the fact that Britain did not offer a wider range of insurance incentives within the health scheme which could give patients the option of having a choice of organisations dealing with insurance for healthcare. Additionally, under the new proposals, patients would have a clear picture of what they are entitled to when it came to treatment and drugs available in exchange for a set fee contribution.

National Health Protection System

Because the new model, known as a National Health Protection System offers a top-up supplementary scheme that allows patients to get rare drugs, it is already being seen as a ‘right to buy’ model which is likely to turn a largely nationalised health insurance industry into the NHS. However, critics are saying that the top-up system may prove inefficient as patients could find that the rare drugs may not be readily available on the NHS. This also raises questions on whether the bold move by the Government signals the beginning of a mandatory health insurance system for all but is it worth the premiums?

Health insurance premiums in the US rose by 5% this year with overall, premiums for family coverage reaching $12,680 and premiums for single coverage rose to $4,704, according a report by Kaiser Family Foundation and the Health Research and Educational Trust. This comes at a time when political debates in America from the Republicans and Democrats both promise to change or improve the healthcare system.

On the other hand, Australia’s parliament shot down a Bill by the Government that would have made it easier for an estimated 400,000 people to walk out on private health insurance. Reports suggest that the Government’s initial plan was to increase income thresholds to A$100,000 ($84,000). But on Tuesday, a new revised threshold figure of A$75,000 was announced by the Government after evaluating shares of Australia's top private hospital operators Ramsay Health Care Ltd and Healthscope Ltd and on private health insurance fund NIB Holdings Ltd.

Can Britain win the battle for ‘health supremacy’?

But the study by Reform indicates that the proposed National Health Protection System means that the £2,000 per head which the NHS spends every year could be offered to individuals to purchase insurance. Although this is touted as a system that would ensure healthcare for everyone, critics see the commercial elements to as a major risk as it may not protect the vulnerable just like the American health care system which has left 44 million people without health insurance.

At the same time, because of the rising cost of treating critical illnesses such as cancer and diabetes, implementing the proposed NHS model could result in an extra 15p tax from every adult in the UK.

Industry sources say this could be the relief that the NHS needs to sort out its current overstretch and underfunding, however, it may not be the answer to the best NHS system. Countries that have a successful healthcare system include Switzerland, Japan, France, Germany, Australia and the Netherlands.