Association of Consumers and Taxpayers (ACT) New Zealand has proposed a fundamental change in how the country funds healthcare. It has called for the adoption of compulsory health savings accounts (HSAs) for all citizens.
ACT leader David Seymour has said the current tax-funded system was no longer sustainable. Mr Seymour was recently addressing the Financial Services Council conference. He said to avoid running into the iceberg of rising health and pension costs, it has to look at how other countries pay for healthcare.
Mr Seymour’s proposal draws inspiration from Singapore’s Medisave scheme, in which every working citizen contributes to a personal medical savings account, The Post reported. The government then tops up the accounts of the poor and chronically ill, while catastrophic costs are covered through insurance.
He said, “When people control their own accounts, they are more likely to look after themselves.” He said the model would drive personal responsibility and reduce waste in the health system.
ACT’s proposal envisages the government acting as an insurer of last resort. Employers could also contribute as part of remuneration packages. ACT says it could create a vibrant market for health insurance products.
Mr Seymour said his proposed system would be phased in gradually and stressed that alternatives such as the German or Dutch social insurance models could also be considered.
Association of Consumers and Taxpayers (ACT) is a pressure group that was founded in 1993.