The mode of payment that is considered to be proportional is.

Question

Options

• AOut -of pocket payment
• BIndividual private insurance
• CEmployment-based group private insurance
• DGovernment financing

• A
  3% (1)
• B
  3% (1)
• C
  9% (3)
• D
  85% (29)

Explanation

Government financing is proportional because it is typically funded through taxes set as a fixed percentage of income, meaning every individual contributes the same share of their earnings regardless of income level - a hallmark of proportionality in health financing.

Why the distractors are wrong:

• A (Out-of-pocket): Regressive, not proportional - lower-income individuals spend a disproportionately larger share of their income on direct payments than wealthier ones.
• B (Individual private insurance): Also regressive - premiums are generally flat rates, so they consume a greater proportion of a poor person's income than a rich person's.
• C (Employment-based group private insurance): While more equitable than individual insurance, contributions are still often tied to flat premiums rather than a consistent income percentage, making them lean regressive.

Memory tip: Think of the word "government" and link it to "proportional" by remembering the phrase "Government charges the same Government rate for all." Unlike private insurers who charge flat fees (regressive) or sliding-scale systems (progressive), government tax-based financing hits everyone at the same income percentage - that's your proportional signal.

No community discussion yet for this question.