Individuals usually have five ways in financing healthcare, depending on which country or state you live in.
The first model is Siemaszko's model wherein all healthcare expenses are financed by the government the individual is residing in.
The second model is Beverdige's model wherein most healthcare expenses are shouldered by the government, usually through the people's taxes. In this model, the individual partially shoulders his or her expenses through his or her taxes.
The third model is Bismarck's model wherein obligatory contributions from employers/employees of a public or a private company are made (separate from taxes) specifically for healthcare. This is more commonly termed as government health insurance.
The fourth model is the residual model or the private insurance model wherein people have a choice to get a private health insurance (not mandated or obligatory, in contrast to Bismarck's model). The individual finances this voluntarily or through his or her employer contributions.
Lastly, the fifth model is the out-of-pocket model wherein the individual pays directly to the healthcare provider. In contrast to Siemaszko's model, this model is all shouldered by the individual with no contributions from the government.
<em>You can look at these healthcare financing models from the first one being handled everything by the government and the next one being handles less by the government and more of the individual and the last one is handled everything by the individual. </em>
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