3 Types Of Universal Healthcare

A Look into Universal Healthcare

According to the U.S. Census Bureau in 2005 approximately 44 million people were not covered by any means of insurance, which made up about 15% of the United States population. In more recent estimates, the number has grown to about 60 million; witch would be about 18% considering the increase in population size. With numbers this great healthcare reform is needed, but, the big push at this time is Universal health care also known as a single payer system. Single payer systems are big in European countries and Canada, but it would be tough to judge if they really work, if you were to ask ten people in those countries if the system worked you would get ten different answers.

There are three major plans that are being discussed widely by politicians. The first is the “single payer” government controlled system, second is the “play or pay” system witch would require employers to offer insurance, the third is insurance regulation. This system would not cost anything more to the government, but would set limits on insurance companies.

Single payer health care is the most common throughout most westernized countries. With this system legislation would establish healthcare an entitlement to all citizens and everyone would be issued some sort of coverage card much like current insurance cards. With these cards, every citizen would be entitled to many different services including long term care. The federal government would establish some sort of national healthcare budget and individual state operating budgets. Individual hospitals would operate on a predetermined budget. Physicians would be reimbursed based on fees determined by the government. The system would closely resemble Medicare only on a much larger level. Existing programs such as traditional Medicare and Medicaid would be done away with completely.

Some economists have predicted that the cost of a single payer system would be in excess of $300 billion more a year in taxes. If this is the case that would mean tax increases that would far outspend what the average person is saving on the cost of private insurance.

Other concerns with this system are the shortage of services. For example, in Great Britain the average wait time to see an orthopedic specialist is 15 to 20 weeks while a cardiologist is 21 weeks. Keep in mind that the U.K. population is less than one quarter of the U.S... This could translate to wait times for Americans close to a year. This would be dangerous for both the patients and the health care providers.

In most countries utilizing the single payer system the medical technology is far behind from the United States. With the government controlling the budgets and the current estimates being so high, it would be almost impossible to budget more for new technology. In addition to the less advanced technologies, most countries with the single payer system shy away from non traditional practices such as chiropractors. This means that one in that field would have to go to a cash only basis because insurance would not cover the treatments. As a whole this would bring more frustration than answers to the citizens of the U.S.

The second highly talked about proposal is the “play or pay” system. The idea behind this plan is to let employers bare the cost of insurance. Businesses would be responsible for providing health care insurance for all employees or face a tax that would go to a savings plan to fund those still left with no coverage. The most affected by this plan would be the self employed and small business owners. One of three things will happen with this scenario. Consumer prices will skyrocket due to the increase in cost of keeping employees. Employees’ could have the cost extended to them by means of lower wages, or, employers would be forced to lay off employees to keep prices down to stay competitive. This is the biggest worry we would have to face, the raising number unemployment that could come with this option. Not only would you have higher unemployment, but you would have unemployed citizens with no insurance, this would totally defeat the purpose.

In order for a system like this work the government would have to either offer exemptions to small businesses or a fairly large tax subsidy. Without one or the other this would be the beginning of the end of small business. Large corporations would not be affected negatively simply for the fact that with the number of employees they are already spending thousands if not millions in health care cost. The play or pay system says that businesses would be required to spend at least 8.5% of their budget on healthcare. This would end up being a big relief to large corporations, saving thousands of