Wednesday, April 30, 2008

Open Mike 12: Universal Health Care

In open mike 12, we watched the PBS Frontline documentary Sick Around the World. Go to http://www.pbs.org/wgbh/pages/frontline/sickaroundtheworld/ to watch the documentary as well to follow other links and analysis.

In short, the documentary traces (very successful implementations of) universal health care in 5 countries (England, Japan, Germany, Taiwan, and Switzerland) and summarizes three key points of learning from all these systems:
  • Insurance companies must accept everyone (with or without pre-existing conditions) and cannot make a profit on basic care.
  • Everybody is mandated to buy insurance, and the government pays the premium for the poor.
  • Doctors and hospitals have to accept one standard set of fixed prices.
The entire capitalist world criticized (and continues to do so) when Nehru famously called profit a dirty word. However, the world's most successful universal health care implementations in the richest capitalist countries, seem to be based on the tenet of eliminating profit in the business of basic health care! Sweet Irony!

A description of the documentary from the PBS site follows:

In Sick Around the World, FRONTLINE teams up with veteran Washington Post foreign correspondent T.R. Reid to find out how five other capitalist democracies -- the United Kingdom, Japan, Germany, Taiwan and Switzerland -- deliver health care, and what the United States might learn from their successes and their failures.

Reid's first stop is the U.K., where the government-run National Health Service (NHS) is funded through taxes. "Every single person who's born in the U.K. will use the NHS," says Whittington Hospital CEO David Sloman, "and none of them will be presented a bill at any point during that time." Often dismissed in America as "socialized medicine," the NHS is now trying some free-market tactics like "pay-for-performance," where doctors are paid more if they get good results controlling chronic diseases like diabetes. And now patients can choose where they go for medical procedures, forcing hospitals to compete head to head.

While such initiatives have helped reduce waiting times for elective surgeries, Times of London health editor Nigel Hawkes thinks the NHS hasn't made enough progress. "We're now in a world in which people are much more demanding, and I think that the NHS is not very effective at delivering in that modern, market-orientated world."

Reid reports next from Japan, which boasts the second largest economy and the best health statistics in the world. The Japanese go to the doctor three times as often as Americans, have more than twice as many MRI scans, use more drugs, and spend more days in the hospital. Yet Japan spends about half as much on health care per capita as the United States.

One secret to Japan's success? By law, everyone must buy health insurance -- either through an employer or a community plan -- and, unlike in the U.S., insurers cannot turn down a patient for a pre-existing illness, nor are they allowed to make a profit.

Reid's journey then takes him to Germany, the country that invented the concept of a national health care system. For its 80 million people, Germany offers universal health care, including medical, dental, mental health, homeopathy and spa treatment. Professor Karl Lauterbach, a member of the German parliament, describes it as "a system where the rich pay for the poor and where the ill are covered by the healthy." As they do in Japan, medical providers must charge standard prices. This keeps costs down, but it also means physicians in Germany earn between half and two-thirds as much as their U.S. counterparts.

In the 1990s, Taiwan researched many health care systems before settling on one where the government collects the money and pays providers. But the delivery of health care is left to the market. Every person in Taiwan has a "smart card" containing all of his or her relevant health information, and bills are paid automatically. But the Taiwanese are spending too little to sustain their health care system, according to Princeton's Tsung-mei Cheng, who advised the Taiwanese government. "As we speak, the government is borrowing from banks to pay what there isn't enough to pay the providers," she told FRONTLINE.

Reid's last stop is Switzerland, a country which, like Taiwan, set out to reform a system that did not cover all its citizens. In 1994, a national referendum approved a law called LAMal ("the sickness"), which set up a universal health care system that, among other things, restricted insurance companies from making a profit on basic medical care. The Swiss example shows health care reform is possible, even in a highly capitalist country with powerful insurance and pharmaceutical companies.

Today, Swiss politicians from the right and left enthusiastically support universal health care. "Everybody has a right to health care," says Pascal Couchepin, the current president of Switzerland. "It is a profound need for people to be sure that if they are struck by destiny ... they can have a good health system."

1 comment:

Murali said...

...while in Britain, there seems to be a push by the government to privatize parts of the healthcare system.

See The Great Consolidation by Monbiot:
http://www.monbiot.com/archives/2008/04/29/the-great-consolidation-2/

"This is not a public-private partnership: it is the outright privatisation of primary healthcare. Do I need to explain the implications? The US health system, which the British government seems determined to emulate, is both more expensive and less efficient than ours; those who can’t afford to pay are either excluded or treated like battery pigs"


and also..

"Did any of us ask for this? Are there crowds on the streets demanding the privatisation of the NHS? Even the Tories, for God’s sake, have come out against it: David Cameron’s speech last week placed them to the left of Labour(18). Why, after the 60-odd consecutive quarters of growth that Gordon Brown keeps boasting about, can he not maintain a public service founded in the midst of poverty and rationing? What mysterious hold on policy do the corporations possess, that they can persuade this government to wreck Labour’s finest achievement and damage its chances of re-election?"