In Norway, a complex system financing health services and social services has evolved over time. The largest part of these expenditures is the cost of salaries. In 1967 a general National Insurance Fund was established in Norway. Even before that time a system had been introduced which provided economic compensation for illness, and free medical assistance. With the 1966 National Insurance Act these various arrangements were coordinated and strengthened.
Every person living in Norway today has the right to social security benefits.
The National Insurance Fund is financed through a special levy, which is paid by all employed persons as part of their general income tax. The benefits are of course available for those who are not employed as well. The primary health care services are organised by local authorities at municipal level, while hospitals are organised at county level. Administrative responsibility entails financial responsibility. The decision about how much of the local funds are to be spent on the health sector is left to the discretion of local politicians.