In countries such as Canada, payment is made by the government directly from tax revenue and this is known as single-payer health care.
In France, a similar system of compulsory contributions is made, but the collection is administered by non-profit organisations set up for the purpose.
These funds (which may be run by public bodies, private for-profit companies, or private non-profit companies), must provide a minimum standard of coverage and are not allowed to discriminate between patients by charging different rates according to age, occupation, or previous health status (pre-existing medical conditions).
To protect the interest of both patients and insurance companies, the government establishes an equalization pool to spread risks between the various funds.
In addition to direct medical costs, some national insurance plans also provide compensation for loss of work due to ill-health, or may be part of wider social insurance plans covering things such as pensions, unemployment, occupational retraining, and financial support for students.
Health care costs tend to be high at the extremes of age and other specific events in life, such as during pregnancy and childbirth.