[LyndsySimon]

You've missed the way that it's done absent state intervention, which is perhaps a modification of #3:

    Decide on a per-patient basis, treating the illness when the individual or their family can afford the cost of treatment.

[Arnt]

There are many minor variations. Another common one is the variation where you you pick an insurance plan before your illness, and the insurer later decides on the details on behalf of all of its insured individuals. And... but they're all minor variations.