Health Care Reform & the Law in Canada, Research Paper Example

Introduction

 Despite the close geographical proximity of the United States and Canada, the two countries have implemented health systems that are significantly different in nature. The Canadian health care system has been shown to be one of the best systems available, as it ensures that all of its citizens have equal access to affordable care (Barr, 2011). As such, this health care system has served as a model for current developments in the United States. In the past, the American government appeared to be relatively unconcerned with intervening in the health care system. However, after noting a health care disparity between the wealthy, middle class, and poor individuals living in the nation, many politicians noted a need for health care reform. Several politicians, including President Barack Obama, wished to mimic the health care system that Canada had in place for decades. Under the universal health care system, all Canadian citizens are able to access health care free of charge (Caulfield et al., 2002). Due to political retaliation, America has not yet been able to accomplish such a system within its own country. However, due to the implementation of the Affordable Care Act, it is likely that the nation will experience further reform to its current health care regulations (Jacobs, 2010). It is imperative that America follows these health standards so that its citizens are able to gain access to high quality and cost effective health care.

The Canadian System

The major benefit of the Canadian health care system is that patients are able to choose the physicians and hospitals that they wish to visit, free of charge. Furthermore, citizens receive free access to specialists with a referral from general practitioners. Overall, this system is a more cost effective for the health insurance companies that participate in this program. In addition to the lower health care costs enjoyed by Canadians due to regulations on the cost of medical equipment and medications, this referral system to specialists ensures that all high level care is medically necessary. Therefore, patients are less likely to undergo expensive medical testing if there is no predetermined medical need. The basic cost control mechanism used in Canada is the expenditure limits place on health care providers. Each province sets its own overall health budget and negotiates a total budget, which cannot exceed with each hospital. Thus, these hospitals have a greater need to manage their budget and allot each patient an appropriate portion of this total monetary pool.

Overall, cost containment measures have limited the increase in Canadian health expenditures, although providers complain about their budgets in addition to how often their physicians go on strike. Low health care costs often mean that it is challenging for independent health care practitioners to remain in business. Becoming a physician in Canada is not as cost effective as becoming one in the United States because the pay differential is proportional to the prices that health insurance companies are willing to pay. This relationship is also impacted by the extent to which the government is able to provide health care institutions with funding. The growing cost of medical technology and the difficulty acquiring this equipment as a result is also a concern. Therefore, while there are many advantages that relate to the Canadian health care system, there are many challenges as well.

Furthermore, despite the apparent involvement of health insurance companies in the Canadian system, each province finances its services through an income tax and receives federal funds to ensure that these localities are able to fund the health care needs of its citizens. Therefore, while there does not appear to be a need for health insurance companies, the system is mainly private in nature, but involves an interaction of government funds and privately held organizations. As a consequence of the well-funded nature of this program, the Canadian health care system offers higher life expectancy, universal coverage, comprehensive hospital and medical benefits, no out of pocket expenses and lower administrative costs, while developing a smaller percentage of GDP to healthcare and spending less per capita than the USA. This is an important consideration because Canada is able to provide provinces money for health care programs based on the demographic break down of their citizens. As a consequence, more money is allocated to areas with aging and sick populations to ensure that they are able to have access to the treatments they need.

Overall, it appears that the Canadian system has two advantages. The first is that coverage is universal; all citizens have the ability to access care. Furthermore, Canadian systems have two major cost savings programs built in; one is a lower administrative cost and the second is the lower rate of increase in healthcare costs.

The American System

The Affordable Care Act has brought about a major mode of change to American health care. Ultimately, President Barack Obama aimed to promote a universal health care program in the United States, but controversy between politicians in the nation contributed to the development of this health care act to serve as a legislative compromise. Overall, it appears that these laws are helping to strengthen the American economy because it is helping more patients to be seen by doctors, which will also allow for the creation of business. Since business practices contribute to the economic development of the country, one would expect that enhanced business will contribute to greater wealth. Furthermore, under the previous health care system, taxpayers ended up paying for the health care of those who did not have their own health insurance or were unable to pay out of pocket. Under this new system, this is not necessary. Therefore, the United States will be able to spend tax money it previously contributed to these emergency funds to support other needs of citizens, which is expected to stabilize the GDP.

Overall, it is apparent that the health care practices that are implemented in the United States are heavily concerned with investments in technology. For example, pharmaceutical and medical device companies are expected to benefit from these reform practices because accessible care will allow them to sell a large quantity of their products. However, it is important to consider that it is in part these investments that make the acquisition of care in the country high in the first place. Since the latest technology is expensive, physicians must pay large sums of money to acquire it. In turn, these costs are passed to the patient and their insurance companies. While investment in new technology is a positive aspect of the health care system in place in the United States, it make it challenging for patients to pay out of pocket and certainly makes health care less accessible to those that are unable to afford insurance and associated fees.

Four basic models of health care exist around the world; the Beveridge Model, the Bismarck Model, the National Health Insurance Model, and the Out of Pocket Model. Under the Beveridge Model, health care is funded through the tax payment of citizens. Britain currently has this system in place. A majority of physicians are considered government employees, although some doctors have privately owned facilities. As a consequence, there is a high level of accessibility to case, although patients have the right to choose whether they will visit a public or a private facility based on their financial abilities. The Bismarck model most closely resembles the insurance policy that has been established in the United States. In this system, the insurers put funds aside for their clients and allow them to use these funds if they need to visit a doctor. It is expected that the health insurance plans will cover everybody. However, the United States has not been fully adopted in America because insurance companies are not supposed to profit under this model. This ensures that all individuals have health care and are paying an affordable price for insurance coverage.

One of America’s major flaws is that despite the fact that the health care system has transitioned to one in which a greater number of people are able to access care, the whole population is still unable to do so. Since citizens are now required to have health care, they are fined for not subscribing to it. This is unfortunate for the large number of people who are still unable to find affordable health care options. Since several options are available, many citizens believe that even the least expensive health care options available to them are not worthwhile in terms of the quality of care they are willing to offer. In addition, many individuals are required to spend more money on health care then they consider to be reasonably affordable. Thus, while there is an attempt to ensure that each American citizen has coverage, it is coming at a cost that is not viable for all residents of the country.

A Comparison of the American and Canadian System

Overall, there are a total of four basic models of health care that exist around the world. These include the Beveridge Model, the Bismarck Model, the National Health Insurance Model, and the Out of Pocket Model. The Bismarck model most closely resembles the insurance policy that has been established in the United States. In this system, the insurers put funds aside for their clients and allow them to use these funds if they need to visit a doctor. Meanwhile, Canada follows the National Health Insurance Model. Under this program, citizens rely on private health insurers, but everyone pays into the program. A national-scale health insurance program is cost effective because the insurance company is able to use all of its funds for providing care because marketing and other auxiliary functions are not needed in this system.

Overall, it appears that the Canadian health care system and American health care system are subject to a variety of advantages and disadvantages. The Canadian system is more able to provide care to all of its citizens, although it must sacrifice technological investment in order to do so. On the other hand, not all American citizens are able to have equal access to care, although the individuals that are covered by medical care have access to the best care due to technological innovation (Herzlinger, 2006). Interestingly, both countries have forms of the Medicare and Medicaid programs to ensure that its poor and elderly citizens are able to have access to care independently of the health care experiences of other individuals in the country (Raphael, 2007).

Critical Thinking

It would be advantageous for the United States to adopt the health care system that Canada currently has in place. Since the nation is striving to achieve equality in health care for all people, it is important for the government to consider how they could more effectively reduce the costs of care. Ultimately, this would require many cultural, political, and financial negotiations.

Individuals living in the United States are highly concerned with their ability to access care. As such, individuals that do have access to care regularly visit their physicians. However, many of them abuse this privilege and visit the doctor at times in which it is not medically necessary to do so. As a consequence, physicians often have little free time and are therefore more pleased to see patients that have insurance companies that are willing to compensate them more highly. Otherwise, they would prefer to see individuals that are able to pay out of pocket. As such, simply having a health care plan in the United States does not ensure that all people will have equal access to care. The value of health insurance that people have are still different and doctors will therefore prefer to see certain types of patients over others.

In addition, political negotiations would need to occur to ensure that universal health care could be reasonably achieved in the United States. Prior to President Barack Obama’s campaign, it appeared that many politicians, including Republicans and Democrats, supported the universal health care plan. One of the most interesting health care plans was proposed by Mitt Romney in Massachusetts, who implemented a mandatory health insurance requirement in his state. His citizens enjoyed this plan, which contributed to the basis for the President’s Affordable Care Act. Unfortunately, political dissent between the two parties contributed to a lack of support of the universal health care plan by many members of the Republican Party, making it necessary to come to a compromise regarding care. As a result, the Affordable Care Act was born, but it was not considered to be as highly effective as a national coverage plan would. Therefore, there is a need to renew conversations discussing the possibility of universal health care in politics so there can be a new hope that such a plan will be put in place in the United States.

Last, it is important to consider that biotechnology and pharmaceutical companies are major stakeholders in the American health care system. A shift towards universal health care may therefore make these businesses less profitable. While it is likely that America will still continue to produce technology at a rapid rate, ensuring the affordability of health care will mean that hospitals and private health care institutions will be unable to hold the same purchasing power as they would have prior to the implementation of universal health care. As a consequence, it is likely that many members of these companies will send lobbyists to members of Congress in order to prevent a universal health care plan from being passed (Sunlight Foundation, 2009). Because the American economy is highly reliant upon its business, it will be very challenging for politicians to argue in favor of these bills because of the many conflicts of interest that exist. However, it is important for individuals that support universal health care to persuade the public that this health care system will help resolve many of the health problems currently faced in America and that it is important to prioritize health over business.

Recommendations

There is a need for America to reexamine the benefits that implementing the universal health care system would bring to the country. Currently, the country is making progress as a consequence of the implementation of the Affordable Care Act. However, while more citizens are able to have access to much needed health care, the full population is not able to access care if it is deemed necessary. In addition, the high health care costs related to the provision of care mean that even though many people are now required to purchase a health care plan and have access to health care as a technicality, many individuals and families are unable to purchase care that sufficiently supports their individual health needs. Due to the affordability problem, these individuals have purchased the most cost effective level of care, which is only usable in cases of emergency. Therefore, it is apparent that the current health care system does not support prevention, which is in actuality more helpful in promoting the health of a nation.

It is important for the citizens of the United States to continue using Canada as a model for successful universal health care. This demonstrates that the goal is achievable. Many critics of the universal health care plan believe that its implementation would detract from public services and others aspects of the budget. However, Canada has shown that its economy is strong and the services that it provides its citizens are strong despite the allocation of funds that have been added to the fund for health care. As a consequence of this plan, the people of Canada are less likely to suffer from curable illnesses and to keep chronic disorders under control due to their ability to visit physicians more readily. If politicians claim to truly support the health of their constituents, it is therefore necessary for them to consider the positive impacts the universal health care system will have on the people that vote them into office.

In order to allow the system to transition to a universal care program, it is important for the government to become more involved in the training of physicians. Currently, medical school costs are in an excess of $50,000 per year, which would mean that the implementation of a universal health care program would contribute to great personal financial losses for medical students. As such public medical school programs should be implemented to ensure that this training could be provided at a reduced cost. Once this stake is more significantly reduced, it will be more reasonable for future health care practitioners to more effectively serve such a health care system. Overall, it is necessary for government support to facilitate these necessary changes because an increased access to care involves many steps. Affordability is the product of culture and politics, so it is important for people in power to make the appropriate actions when possible to make changes that support the implementation of a universal health care system.

Conclusion

Due to the rising price of medical costs in the United States as a consequence of technology and related medical investments, there is a need for America to follow a universal health care system similar to the one put forth by Canada. Ultimately, health care should be a basic right and it is the social responsibility of the United States to ensure that each of its citizens has the ability to access it. While doing so will result in a need for a significant change in infrastructure in addition to changes related to cultural normalities and political agreements, data has shown that the universal health care program can help stabilize the American government. Even though health insurance has become an important component of health care in the United States, it is reasonable to continue using this system. However, it is important for the government to regulate these transactions more significant to ensure that care is distributed equally and fairly. No one should be denied health care that wants access to it and the implementation of the universal health care program in the United States will ensure that this will be the case.

References

Barr, Donald A. (2011). Introduction to U.S. Health Policy: The Organization, Financing, and Delivery of Health Care in America. JHU Press.

Caulfield, Timothy A; Von Tigerstrom, Barbara. (2002). Health care reform & the law in Canada: meeting the challenge. University of Alberta Press.

Herzlinger RE. (2006). Why Innovation in Health Care is So Hard. Harvard Business Review, 1-10.

Jacobs, Lawrence R.; Theda Skocpol (2010). Health Care Reform and American Politics. Oxford U.P

Raphael, Dennis. (2007). Poverty and Policy in Canada: Implications for Health and Quality of Life. Canadian Scholars’ Press.

Sunlight Foundation. (2009). VISUALIZING THE HEALTH CARE LOBBYIST COMPLEX. Retrieved from http://sunlightfoundation.com/tools/2009/healthcare_lobbyist_complex/