NHS 'should switch to insurance'

The NHS should switch to a form of health insurance to better compete with other countries, according to a report.

The study, from the think tank Reform, said two factors were crucial in the "battle for health supremacy".

These were that the health system provided universal coverage and that it had strong insurance incentives.

The report said Switzerland and Japan performed the best on both of these fronts.

These countries are followed by France, Germany, Australia and the Netherlands, but the UK and US lag behind.

For the UK to "catch up", it must introduce more insurance incentives into the system, including giving patients a choice of organisations that offer insurance for healthcare; providing clarity over healthcare entitlement - such as the treatments and drugs available in return for a set financial contribution; and steps to encourage people to take more responsibility for their health.

The report suggests a new model - a National Health Protection System - where people are able to invest a £2,000 per year tax-funded premium to guarantee their healthcare.

This is the amount the Government currently spends per head per year on the NHS, it said.

The new model would also allow for a top-up system of supplementary insurance to cover rare drugs and "luxury" items.

The report said the UK performs poorly against other countries on a number of indicators. It came seventh out of eight in terms of life expectancy, sixth out of eight in terms of infant mortality and seventh out of eight in terms of cancer mortality.