In this article, we will be looking at the 25 countries with free or universal healthcare. If you want to skip our detailed analysis, you can go directly to 5 Countries With Free Or Universal Healthcare.
World Health Organization defines universal healthcare as coverage where “all people have access to the full range of quality health services they need, when and where they need them, without financial hardship.” The provision of universal healthcare is one of the sustainable development goals that the world adopted in 2015.
According to WHO, in 2021, 4.5 billion people were not covered by universal healthcare coverage for essential services. Without healthcare coverage, people must incur the cost from their pockets. This out-of-pocket financing of healthcare services pushed 344 million individuals globally to extreme poverty and 1.3 billion individuals into relative poverty.
The provision of universal or free healthcare is central to development. However, the cost of healthcare is constantly rising. In 2020, global government spending on healthcare rose to $9 trillion, accounting for almost 11% of global GDP. Healthcare outpaces inflation, which means that healthcare costs rise more than the economy’s growth rates. Nonuniform rates are a main factor in the rise in global healthcare spending. You can also check out: 20 Countries with the Most Expensive Healthcare in the World.
The Price Puzzle: Why Healthcare is Expensive in the US
The United States has one of the most expensive healthcare systems in the world. According to data from OECD, in 2022, the United States spent an estimated 14.1% of its entire GDP on healthcare expenditure. This percentage corresponds to the estimated per capita government spending of $10,643.65 in the same year. According to an article published on July 14 by the Peter G. Peterson Foundation (PGPF), the healthcare spending by the US in 2021 was almost $4.3 trillion, which averages to about $12,900 per person.
Despite having one of the highest per capita spending and overall GDP allocation for healthcare, the United States healthcare lacks outcomes. Furthermore, the average cost of healthcare in the US is double that of other wealthy countries. The lack of results and long healthcare bills have rightfully earned the US healthcare system the image of being one of the most expensive in the world.
One of the main reasons for the increasing price of healthcare in the US is inflation. According to the Bureau of Labour Statistics, from 2000 to June 2023, the prices of all goods and services increased by 80.8% in the US. During the same period, prices of healthcare services increased by 114.3%. Healthcare prices traditionally have a higher growth rate than inflation. Therefore, healthcare services had a higher price spike than other consumer services.
Another contributing factor is the huge aging population. According to PGPF, the population over 65 has increased from 13 percent in 2010 to 16 percent in 2021. People over 65 are eligible for the Medicare program. The increasing number of enrollments in the program is increasing overall medical spending. Medicare spending has been forecasted to increase from 3.1% of GDP in 2023 to 5.5% by 2053.
Top Players in Healthcare Plans
Navigating the healthcare space can be daunting, especially in a country like the United States. One of the main things that can ease anxiety is connecting with a good company providing healthcare plans. Alignment Healthcare Inc (NASDAQ:ALHC) is one of the giants in the United States healthcare industry. The company provides customized healthcare through its Medicare Advantage plans.
On October 17, Alignment Healthcare Inc (NASDAQ:ALHC) announced that it had signed an agreement with Walgreens (NASDAQ:WBA) to provide Medicare plans. The two companies have joined hands to provide $0-premium co-branded Medicare Advantage plans to eligible people. Arizona, California, Florida, and Texas have been selected as the initial markets for the plan by Alignment Healthcare Inc (NASDAQ:ALHC). The companies will start offering the plan from January 1, which is forecasted to help almost 1.6 million.
Cigna Group (NYSE:CI) is another noteworthy company in the United States that provides healthcare plans. Cigna Group’s (NYSE:CI) plans and networks are designed to help employees and employers access the right and quality services at the right time. On October 17, the company announced it is expanding to four new counties in the Asheville area. Eligible people in these counties can access the company’s plans during Medicare’s Annual Enrollment Period (AEP). Cigna Group (NYSE:CI) will offer $0 premium plans and attractive benefits in these newly added areas.
CVS Health Corp (NYSE:CVS) is a prominent name in pharmacy and offers a variety of healthcare plans, including individual and family Affordable Care Act (ACA) plans. On November 1, CVS Health Corp (NYSE:CVS) reported earnings for the fiscal third quarter of 2023. The company reported an EPS of $2.21, beating estimates by $0.08. The company’s revenue for the quarter grew by 10.6% and amounted to $89.76 billion, ahead of market consensus by $1.59 billion. Here are some comments from CVS Health Corp’s (NYSE:CVS) earnings call:
“Today, we reported strong third-quarter results, highlighting the power of our diversified business model. We delivered an adjusted EPS of $2.21 and an adjusted operating income of nearly $4.5 billion. Our consolidated revenues for the quarter of almost $90 billion reflect an increase of nearly 11% over the prior year. And once again, we generated outstanding operating cash flows, bringing our year-to-date total to $16.1 billion. We are reconfirming our guidance range for 2023 adjusted EPS of $8.50 to $8.70; this reflects execution against our strategy with strong performance in our Pharmacy and consumer Wellness segment and continued momentum in our Health Services segment, offsetting incremental Medicare Advantage medical cost pressures in our Health Care Benefits segment.”
Navigating healthcare systems can be tricky and expensive. Some countries have actively adopted policies to ensure their populations have access to universal or free healthcare. The following ranking provides a comprehensive overview of the countries that offer free or near-free healthcare to their citizens. You can also check out: 25 Countries With The Worst Healthcare System.
25 Countries With Free Or Universal Healthcare
Our Methodology
To make our list of countries with free or universal healthcare, we have used the universal healthcare coverage index by the WHO. The index has assigned values to each country based on the extent of universal healthcare coverage. The latest available data was for 2021. We have arranged the list of countries’ universal healthcare coverage in ascending order.
25 Countries With Free Or Universal Healthcare
25. Japan
UHC Service Coverage Index Value in 2021: 83.45
Japan is on our list of countries with free or universal healthcare. Japan provides healthcare services to all citizens, permanent residents, and some foreign residents enrolled in an employment-based or residence-based health insurance plan. In 2021, the UHC service coverage index measured for Japan was 83.45.
24. Italy
UHC Service Coverage Index Value in 2021: 83.84
Italy is one of the countries with a universal healthcare system. The entire population has access to the healthcare system, which is largely free at the point of service delivery. In 2021, the UHC service coverage index for Italy stood at 83.84.
23. Czechia
UHC Service Coverage Index Value in 2021: 84.24
Czechia has a universal healthcare system. The healthcare system covers almost the entire population. The private healthcare services industry complements the public healthcare system. Czechia recorded a UHC service coverage index value of 84.24 in 2021.
22. Slovenia
UHC Service Coverage Index Value in 2021: 84.35
Slovenia is a significant name on our list of countries with free or universal healthcare. The country has universal healthcare funded mainly through taxes and social security payments. The UHC service coverage index value for Slovenia stood at 84.35 in 2021.
21. Austria
UHC Service Coverage Index Value in 2021: 84.53
Austria is known as one of the countries with a universal healthcare system. The government ensures access to quality healthcare for all income groups through various programs and cost-sharing. In 2021, the UHC service coverage index measured for Austria was 84.53.
20. France
UHC Service Coverage Index Value in 2021: 84.79
France has a universal healthcare system. The government’s national health insurance mainly funds the healthcare system in France. 84.79 was the UHC service coverage index value for France in 2021.
19. New Zealand
UHC Service Coverage Index Value in 2021: 84.83
New Zealand is one of the countries with a universal healthcare system. The healthcare system is funded publically, mainly through taxes. In 2021, New Zealand achieved a UHC service coverage index of 84.83.
18. Netherlands
UHC Service Coverage Index Value in 2021: 85.21
The Netherlands is a high-income country that has a universal healthcare system. The Dutch government ensures access to quality healthcare for virtually the entire population. The UHC service coverage index value for the Netherlands in 2021 was 85.21.
17. Malta
UHC Service Coverage Index Value in 2021: 85.24
Malta is one of the countries with free and universal healthcare. Malta’s National Health Service (NHS) ensures everyone has access to the necessary healthcare services. In 2021, Malta’s value UHC service coverage index stood at 85.24.
16. Sweden
UHC Service Coverage Index Value in 2021: 85.25
Sweden also has universal healthcare and provides healthcare services free of cost to almost the entire population. The social welfare state funds its healthcare mainly through taxes. Sweden had a UHC service coverage index value of 85.25 in 2021.
15. Spain
UHC Service Coverage Index Value in 2021: 85.26
Spain is one of the countries with universal health coverage. The healthcare is provided through a publically funded system. The contributions made are in the form of taxes and are proportional to the income. The UHC service coverage index value for Spain stood at 85.26 in 2021.
14. Isreal
UHC Service Coverage Index Value in 2021: 85.45
Israel has universal healthcare available to all its legal residents. National Health Insurance (NHI) has made healthcare accessible to everyone. In 2021, the UHC service coverage index measured for Israel was 85.45.
13. Belgium
UHC Service Coverage Index Value in 2021: 85.59
Belgium is among the most notable names on our list of countries with free or universal healthcare. The healthcare system in Belgium is universal and covers almost the entire population. The healthcare coverage is provided through public funding. For Belgium, the UHC service coverage index value in 2021 was 85.59.
12. Finland
UHC Service Coverage Index Value in 2021: 85.68
Finland has earned its place on our roster of countries recognized for providing free or universal healthcare. The country has a universal healthcare system primarily funded through taxes and social security payments. 85.68 was the UHC service coverage index value for Finland in 2021.
11. Monaco
UHC Service Coverage Index Value in 2021: 85.9
Monaco has one of the best healthcare systems in the world. The country provides healthcare services to its population through Caisses Sociales de Monaco (CSM). Caisses Sociales de Monaco (CSM) is available for all contributing people. In 2021, Monaco achieved a UHC service coverage index of 85.9.
10. Switzerland
UHC Service Coverage Index Value in 2021: 86.34
Switzerland has universal healthcare. However, the healthcare is not entirely free. Switzerland has a very high rate of out-of-pocket spending in the world. The high rate corresponds to 26% of total health expenditure. The UHC service coverage index value for Switzerland in 2021 was 86.34.
9. Australia
UHC Service Coverage Index Value in 2021: 86.78
Australia has universal healthcare coverage provided through Medicare. The public healthcare services in Australia are accessible to all Australian citizens, permanent residents, and some visitors and visa holders. In 2021, the UHC service coverage index for Australia stood at 86.78.
8. Norway
UHC Service Coverage Index Value in 2021: 87.03
Norway is among the list of countries with free or universal healthcare. The National Insurance Scheme (NIS) provides healthcare services to all residents. The National Insurance Scheme (NIS) is funded through taxes and payroll contributions. Norway had a UHC service coverage index value of 87.03 in 2021.
7. United Kingdom
UHC Service Coverage Index Value in 2021: 87.8
The United Kingdom has a universal healthcare system. The National Health Service (NHS) primarily provides free public healthcare to all residents. The NHS is publically funded primarily through taxes. In 2021, the UHC service coverage index value for the United Kingdom was 87.8.
6. Portugal
UHC Service Coverage Index Value in 2021: 87.91
Portugal is one of the countries with free or universal healthcare. The National Health Service (SNS) enables all legal residents of the country to access healthcare services. The WHO notified a value of 89.09 to Portugal for the UHC service coverage index in 2021.
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Disclosure: None. 25 Countries With Free Or Universal Healthcare is originally published on Insider Monkey.