Monday, April 11, 2016

Trouble with Universal Healthcare


I believe I have talked about this in the past, but it is an important topic to know especially as so many people seem to want universal health care here in the States (Sanders and Clinton supporters among other Democrats).  So what is the weakness of this system?  Let’s discuss.

1) The primary weakness to this system is that in order for it to work, the government needs to decide what cures/treatments will be provided.  In this instance, the government takes on the same role as an insurance company where they decide what is the cheapest, yet most effective, treatments for an illness or a condition.  For example, if a person has cancer, the government may only cover under this system; operations to remove the cancer or placing a radioactive isotope near the tumor to slowly kill the cancer if it is too dangerous to operate on a patient.  Other treatments like Chemotherapy, and others may receive partial payment or none at all due to them not being as cost effective for the government.  They do this because the government has to meet a budget requirement that is created each year by politicians.  Likewise, private insurance companies do the same thing, but they only have to cover a smaller group of individuals which also allows for more things to be covered or partially covered.  Basically, a smaller budgetary requirement as compared to government who has to now treat millions of people.  

2) Another weakness of this system is that when deciding what treatments, the government also looks at the potential success and failure rate of those treatments for each person depending on age, and other factors.  As such, if the government thinks you will simply die regardless of treatment after a few days or even months, then they may refuse to pay for your treatment.  This has been the case with Baby Mathew, (this happened a few years ago and was covered by Fox News) a child born in Canada with an impossible to treat disease. The parents already had lost one child to the condition Mathew had, but wanted to still fight to save their child.  The Canadian government however refused treatment as they saw the case was hopeless and that the child would die regardless. As such, the parents took their child to the United States, paid for the child's treatment granting the child another three months of life before the disease killed Mathew.  Basically, the treatment allowed the parents more time to say goodbye to their child, something the Universal health system in Canada does not care about.

Conclusion:  Both the first and second weakness is what amounts to rationing in a universal health care system.  It is also the reason why in Europe that private health insurance companies still exist, but they only help pay for what the government does not cover and only at a premium as only the rich can afford health insurance as it covers only the most expensive treatments.  As such, the government has to take drastic measures to keep costs down as people, thinking that healthcare is free (they pay upwards of 50% to 75% of their income for this system in European countries) are more likely to go visit a doctor which in turn increases costs further as they visit for the smallest of cuts and curable conditions.  Basically they waste the doctor's time and thus the government's money which pays for the visit.  So is there a way to make the Universal health system work while keeping costs down?  In the next few issues I will look at exactly that. 


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