Until Medicare Was Introduced

Until Medicare was introduced, Canadian health care costs were growing as fast as those in the United States. But “the period of the most rapid escalation ended with the establishment of universal coverage” paid for from public funds. Even more startling is the fact that public spending on health care accounts for virtually the same proportion of each country’s total economy. Yet, Canada covers the whole population and the United States covers only the elderly, the very poor, the military, and some of the disabled.

With the government as the main purchaser of services, health care is not only cheaper for individual taxpayers. It is also cheaper for employers, especially for those employers facing unions strong enough to successfully demand full health care coverage. In the United States, Chrysler pays more for health care than it pays for steel. In Canada, Chrysler does not have to pay for basic hospital or medical costs and therefore its employee costs are lower. Workers’ compensation in Canada does not have to cover these basic costs either, and thus this protection too is cheaper for the Canadian employer.

With the single-payer scheme for many essential services, Canadians have a one-tier system. The rich and the poor go to the same hospitals and doctors. Neither receives a bill and the rich cannot buy quicker access, preferred status, or better facilities. What is covered by the public insurance system cannot be covered by a private insurer and doctors are not allowed to bill above the prescribed rate for services covered by the public insurance. Sharing facilities and services means that the entire population has a vested interest in maintaining the quality of care.

For more than a quarter century, Canada has been providing this comprehensive, accessible and high-quality care, without billing individuals for services or relating care to financial status. Equally important, it has done so more efficiently and at least as effectively as the competitive system serving an illness market in the United States. It is not surprising, then, that 96 per cent of Canadians prefer their system to the American way. It is somewhat more surprising that a majority of Americans also prefer the Canadian system to that in the United States. After all, health care services are very similar on both sides of the border.….. This blog will be continued next week featuring exerts from the book, “Universal Health Care”.

To get a quotation on Group Health Insurance for your company, call us at (972) 219-6004 or visit us at www.Insurance4Dallas.com

Insurance4Dallas
Health Insurance Blogger

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Part 2 (A Canadian Love Affair)

The most important explanation for this support can be found in what are known as the five principles of the Canada Health Act.  These are criteria for funding set out by the federal government, criteria the provinces must follow in order to receive financial support for their heath care services.  Simply put, these principles require that core medical services be universal, portable, accessible, comprehensive, and publically administered.  In other words, all Canadians must include all that is medically necessary, and must be provided regardless of age, prior condition, location, or employment.  And they must be provided without regard to ability to pay.  Canadian Medicare was designed to allocate care on the basis of need, not individual finances. 

And it worked.  The system has delivered on the promised access to care.  While “the number of uninsured Americans had risen to more than 40 million in 1995, virtually every Canadian is covered for essential care.  This contract in access to care can be traced to the basic philosophical approach used to fund services in Canada.  As one 1981 task force put it, “Canadians are endeavoring to develop a health care system directed at health needs – not a competitive system to serve an illness market.”

This is made possible by the single-payer system.  For the most part, health care in Canada is not provided by the government.  It is paid for by governments.  It is a public insurance system, a system in which governments at various levels pay for health services.  Most of these services themselves are provided by nonprofit organizations or by doctors working on a fee-for-service basis.  It is public payment for private practice and private provision.  This single-payer system has made care in Canada cheaper than in the United States, both because it significantly reduces administrative cost and because it allows for more coherent management of services….. This blog will be continued next week featuring exerts from the book, “Universal Health Care”.

To get a quotation on Group Health Insurance for your company, call us at (972) 219-6004 or visit us at www.Insurance4Dallas.com

Insurance4Dallas
Health Insurance Blogger

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A Canadian Love Affair

Ask any Canadian, “What is the difference between Canada and the United States?”  Virtually every one of them will say “health care”.

A remarkable 96 percent of Canadians prefer their health care system to the U.S. model.  And this support is not simply a reflection of Canadian nationalism in the face of a very large neighbor, although Medicare certainly plays a central role as a defining national characteristic.”  Over the years, poll after poll has repeatedly demonstrated that health care is Canada’s best-loved social program.  An overwhelming majority of Canadians persistently say they want to keep their health care system.

In 1994, the Canadian government appointed a National Forum on Health to examine the current state and future possibilities of the health system.  The focus groups and surveys conducted by the forum found that “the provision of health care services continues to receive strong and passionate support” among Canadians.  Similarly, the president of a major polling firm reported recently that among government programs “only the health care system received approval from a majority of Canadians.”  He went on to point out that the support even crosses social class lines.  Otherwise strong differences in class values “don’t occur to the same extent in the area of health care, perhaps because everyone can see themselves as becoming sick at some point.

The current system is so popular that all Canadian politicians represent themselves as defenders of this sacred trust.  Perhaps more surprisingly, so do many corporations in the private sector.  Indeed, a major health insurance company has declared in a recent advertisement that it “believes strongly in the sanctity of Canadian Medicare.”…. This blog will be continued next week featuring exerts from the book, “Universal Health Care”.

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