This paper reviews some of the recent literature and experiences in healthcare reform in the light of the peculiarities of human nature. The review suggests that successful healthcare financing reform boils down to working out a cost/risk-sharing formula between government and citizens that can effectively preserve the incentives for efficient utilization of healthcare resources and for preventive care, while limiting the financial risk of citizens. The paper will also address issues arising from aging and redistributive concerns, as well as political and administrative feasibility.
Ho, L. S. (2007). Health care financing reform: A socio-economic perspective (CPPS Working Paper Series No.187). Retrieved from Lingnan University website: http://commons.ln.edu.hk/cppswp/88/