The NHS may switch to a form of health insurance to compete with other countries, a study has shown. The study, by health group Reform, revealed that the UK is performing poorly against a number of indicators.

It stated that providing universal cover and having strong insurance incentives in the health system are the two crucial factors in the “battle for health supremacy.”

Japan and Switzerland showed the best performance in these factors whilst the UK and US are way behind other countries such as France, Germany, Australia and the Netherlands.

The report revealed that Britain is sitting at the bottom of the health league table and are not performing as well against other countries as it came seventh out of eight in terms of life expectancy and cancer morality, and sixth out of eight in terms of infant mortality.

To show better a performance, the study suggested that the UK introduce more insurance incentives to the current system such as giving patients the opportunity to choose organisations that offer insurance for healthcare.

The report proposed a new model called a National Health Protection System (NHPS) where people can invest £2,000 per year tax-funded premium which may guarantee their healthcare. The report also stated that the NHPS may also allow a tot-up system covering rare drugs and “luxury” items.

Andrew Haldenby, Director of Reform said, "The Olympics showed that an open-minded, elitist and rigorous approach can put Britain in the top rank of countries. Healthcare is no different."