Fixing US Health Care System (#55)
The whole complicated problem can be summarized in just two words, runaway costs. At present, legislation is being drafted in the US Congress for health care reform, accompanied by a few months of debates, and possible passage by yearend.
Without bringing the costs down, health care reform cannot succeed. The following examines the various ideas to be incorporated into the legislation:
1. Single payer system. It is clear that the present private system driven by profit does not work. What if the government takes over? This has worked in most developed countries, albeit not perfectly. The big hurdle is public opposition because most Americans believe, rightly or wrongly, that only private enterprise can provide good quality and choice. However, they dont see that there is no competition in health care, resulting in runaway costs. The idea of a government takeover will unfortunately energize the opposition, thereby jeopardizing the chances for passing the reform bill.
2. Government insurance. Instead of a single payer, the government establishes a public health care insurance company to compete with private ones, thereby lowering costs and offering more choices. The private insurance companies do not want this to happen for it will cut into their profit margin.
3. Universal coverage. The government insures or subsidizes all the uninsured to create the biggest market under universal coverage. In the insurance business, a bigger market tends to reduce costs.
4. Basic safety net. The government provides a basic safety net for all citizens. In order to keep the costs down, only catastrophic insurance against cancer or incapacity is provided to all citizens. Those who can afford more may buy any kind of additional insurance they wish from the private sector.
5. Free flow of information. All health care providers are required to publish their prices and services on the Internet so that consumers can compare and choose the best low price.
6. Reduce wastes. Health care in the US costs trillions of dollars a year. Making the system more efficient will reduce billions dollars of wastes. A major effort to digitalize all medical records and store them in a secure database is already taking place.
7. Limits on insurers. Insurance companies are not allowed to pick and choose the healthiest customers to maximize their profits.
8. Limits on lawsuits. A reasonable limit is set on compensation for health damages unintentionally caused by doctors, hospitals or drug companies. The goal is to inject some certainties into the operations of the health care business with a goal to reduce costs.
9. Limits on drug companies. Current preferences granted to drug companies are reviewed with a view to bring down drug costs to the public.
10. Appeal to providers conscience. Doctors and hospitals are encouraged to support the reform. They are reminded of the call of their noble profession to serve the public, rather than profit maximization.
11. Public education. The public is reminded of their personal responsibilities to live a healthy life, and not to abuse or overuse the medical system.
12. Grand Compromise. Health care reform in America is the most difficult because of the status quo. Anybody can find a good reason to reject reform. The general public is concerned about too much government intervention. The drug companies, doctors, hospitals, and other providers worry about reduced profit margins. The insurance companies fear that the government may drive them out of business. The trial lawyers do not want a limit on how much they can sue for medical mistakes. It is up to the Obama Administration to forge a grand compromise with various interest groups. Despite all the hurdles, the chance for success is much better now because most people know that the current system is not sustainable.
www.herbsandtea.com
June 2009
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Australian perspective on US Health Care System Part 1by Rupeniqase1,787 views
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