Which of the following is an example of financing as a health policy instrument?

• A. Creating national health insurance.
• B. Providing tax subsidies for health insurance.
• C. Running targeted public education campaigns to promote healthy behaviors.
• D. Reorganizing hospital departments.

Answer: (B)

Financing as a health policy instrument uses financial tools to influence behavior by altering costs, pricing, or the flow of money in the health system. The option that best illustrates this is providing tax subsidies for health insurance because it directly changes the net price individuals pay for coverage through the fiscal system, making insurance more affordable and encouraging uptake. This is a clear use of fiscal policy to shape demand and access, i.e., a financing mechanism.

The other ideas involve different kinds of policy tools. Creating national health insurance is a broad reform that reorganizes financing and risk pooling, which goes beyond a single financing instrument and into system design. Running targeted public education campaigns uses persuasion to change behavior, not money or pricing. Reorganizing hospital departments is a governance/organizational change affecting how services are delivered, not how financing is used to influence choices.