Health Care in Netherlands

in 2006, a new health insurance system came into force in the Netherlands. This new system avoids the two pitfalls of adverse selection and moral hazard associated with traditional forms of health insurance, using a combination of regulation and a swimming pool security equation. Moral hazard avoided the mandatory insurance companies provide at least one policy that meets a government set minimum standard level of coverage, and all adult residents are obliged by law to purchase such coverage from an insurance company of their choice . All insurance companies receive funds from the pool balance to cover the cost of this government-mandated coverage. This group is run by a regulator which collects salary based contributions from employers, which represent approximately 50% of total funding for health care, and funding from government to cover people who can not afford healthcare, which is an additional 5%.
The remaining 45% funding of health care comes from premiums paid by the government, for which the companies compete on price, although the variation between competing insurers is only about 5%. However, insurance companies are free to sell additional policies to provide coverage over the national minimum. These policies do not receive funding from the pool equation, but also extends to treatments such as dental procedures and physiotherapy, which are not paid by the mandatory policy.
Funded by the pool balance is distributed to insurance companies to insure everyone in the required policy. However, the high-risk individuals to get more from the pool and low-income people and children under 18 have their insurance paid in full. Because of this, insurance companies do not find the security people at high risk and unappealing sentence, avoiding the potential problem of adverse selection.
Insurance companies may not be shared payments, caps or deductibles, or deny coverage to any person applying for a policy or charge anything other than their nationally set and published standard premiums . Therefore, anyone who buys insurance would pay the same price as everyone else buying the same policy, each person will get at least minimum coverage.