One of These Things Is Not Like the Others

At the American Council on Science and Health Alex Berezow takes note of the differences between our health care system and those of other “rich countries”:

The first peculiarity is the amount of money the U.S. spends on healthcare. On a per capita basis, Americans spend 77% more on healthcare than other high-income countries. As a percentage of GDP, healthcare constitutes 1/6 of the U.S. economy, but it constitutes less than 1/8 of the economies of similar nations.

The second peculiarity is how healthcare costs are covered. In the average high-income country, 63% of healthcare spending is covered by the government, whereas less than 50% is covered by the American government. Additionally, prepaid private spending (e.g., insurance) plays a larger role in covering healthcare costs in the U.S. than in other high-income countries. And though out-of-pocket costs (as a percentage) are roughly the same between the U.S. and other similar nations, Americans pay more out-of-pocket due to the high relative cost of healthcare.

The comparison is highlighted in the table at the top of this post. As a word of caution, I think the table understates the percentage of health care paid for by the U. S. government slightly since it doesn’t include the employer-subsidized plans of government workers in its reckoning of “government-paid”.

I see several other differences worthy of note. The U. S. is by far the most diverse OECD country in terms of religion, race, ethnicity, and economy. The U. S. has a much higher percentage of very rich people as well as a much higher percentage of very poor people—people who are poor by world standards, something almost unheard of in other OECD countries.

Here in the U. S. we trust government less than they do in other OECD countries and our government is much less centralized than in other OECD countries. We are much larger both geographically and in terms of population. And the foundations of all the health care systems of all OECD that include single-payer or full on national health systems were laid when per capita health care spending was much, much lower than it is now.

After many years supporting a single-payer system for the U. S. I arrived at the conclusion that such a system would be ruinous here because we simply don’t have the will to contain spending.

4 comments… add one
  • ken h Link

    Speaking as a Canadian, I don’t know a single person that wants your health care system. Not one. If we can provide less expensive health care, then why can’t you? Take a look at the facts and don’t be swayed by lobbyists and those with a vested interest in maintaining the status quo.

  • steve Link

    I dont necessarily think that single payer is the answer, but I don’t think your reasoning is correct. I think one of the reasons other countries have been more conscious of costs is that everything is lumped together. As it stands with our system, people just fight over the pieces. The GP wants to cut Medicaid spending, of course, but not touch Medicare. The Dems made some very minor cuts to Medicare, and got kicked out of office. Both sides seem to think they can get private insurance companies to compete and that will cut costs. LOL. I think it is certainly possible if everything was in one system costs would have to be confronted and it would be more difficult to concentrate on just cutting spending for the groups you don’t like.

    Also, when you break down the high income countries to individual ones, the general finding is that the more market oriented the system, the more expensive the system.

    Steve

    Steve

  • Jan Link

    CA is currently on course to legislatively implement a single payer health care system in the near future. They are looking at Canada as knd of a role model. Additionally, this single payer experiment will cover everything for everyone living in CA, including our enormous illegal (undcumented) population. Canada has warned CA officials, though, that once established, such a system can’t be taken away. Sigh……

  • You may be misinterpreting me. I don’t think a system that’s more market-oriented is what’s needed. I think one that’s less market-oriented is what’s needed.

    However, I also think that no reform to our health care system can be effective without a commitment to cost control.

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