Source: The Melbourne Herald Sun [Steve Lewis]

A NEW Medicare-style tax would fund a universal dental scheme as part of a radical plan to fix the ailing health service.

And every Australian would belong to a national health insurance scheme under Euro-style reforms to "socialise" the current private - and costly - system.

The Prime Minister is also being urged to take over a range of state-run services - such as mental health, drug and alcohol treatment - under the plan to be unveiled today.

In the biggest shift in healthcare for years, the Herald Sun has learned Kevin Rudd's handpicked National Health and Hospitals Reform Commission urges a universal dental scheme.

To be called Denticare, it would be funded through a special taxpayer levy, or tax.

The commission wants billions of dollars raised to deliver essential dental services to needy people who can't afford a visit to the dentist.

Mr Rudd gave an election commitment to lift the quality of health services, flagging a commonwealth takeover of hospitals if the states fail to lift their game.

He asked the NHHRC to conduct a national inquiry into health and will be under pressure to respond favourably to its recommendations.

Among the biggest reforms, the commission suggests a new scheme of "social insurance" similar to France and the Netherlands.

This would replace the current system of private health insurance, championed by former PM John Howard and the Liberal Party.

In its place, new "pooled" arrangements would see private insurers and the public-funded Medicare compete for the services of patients.

Senior sources admit it would socialise the existing system - but say it would deliver more competition and better efficiency.

But it is uncertain what would happen to schemes like the 30 per cent private health rebate, introduced by the former Coalition Government.

The powerful and wealthy private health insurance lobby is also certain to strongly oppose the commission's suggestion to introduce the kind of universal insurance scheme used by France, Germany and the Netherlands.

The commission's 400-page report to be unveiled today also recommends measures to strengthen primary care.

These include a Commonwealth takeover of services funded by the states, including as alcohol and drug treatment services, mental health and child health services.

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