In 2006, the Netherlands transformed its health care system to increase coverage through a public-private partnership.  While the pre-2006 Dutch system reflected the current U.S. model, the success of the current Dutch system marks a potential model for health reform in the U.S.  This abstract is drawn from a brief by Niek Klazinga, a Professor of Social Medicine at the University of Amsterdam.

The Dutch health care system seeks to ensure that all residents have health insurance at minimal cost with a high quality of care.

The Dutch healthcare system, fundamentally reformed in 2006, includes a mandate that all residents and Dutch taxpayers purchase health insurance from private insurance companies.

Private insurance companies face strong regulations that require them to cover all applicants.  Insurers must charge an equal price for equal coverage to all customers, irrespective of risk.  The government has mandated that private insurers must cover a wide variety of treatments including primary care, hospitalization and prescription drugs.  

The Dutch government compensates insurance companies for assuming riskier clients.  The government itself covers chronic and mental health services, but does not have a so-called public option.

The system is funded by a combination of premium payments (equal payments for equal coverage) and payroll taxes (flat-rate for employed citizens; reduced rate for the unemployed). Moreover, healthcare allowances are afforded to low-income individuals for help with their premium payments.  The Dutch government covers all premiums for those under 18.  While the Dutch system relies largely on private insurance to compete and control costs, the Dutch government finances a majority of the healthcare system.